Trinidad And Tobago To Overhaul Property Tax

by Amanda Banks, Tax-News.com, London

01 October 2009

Following the announcement in Trinidad and Tobago’s 2009/2010 budget that property tax law would be overhauled, the territory’s Minister of Finance, Mariano Browne has corrected erroneous reports that the rate change would happen immediately, and upward.

According to the minister, the government plans to streamline the property tax system, which currently levies different rates, ranging between 7.5% and 10%, depending on the location of the land. Under the new system, Browne informed, the tax will be consolidated under one system at a lower rate of 3%, with water rates levied on a separate basis.

“It was anticipated that alongside modernizing the tax system taxpayers would see an increase in tax. We've actually started talking about reducing the rate from 7.5%-10% to 3%, making it a consistent across the board,” Browne was quoted as saying in an address to the Senate on September 27 by the Trinidad Express.

Under the proposed system, residential and commercial properties will be subject to tax based on their hypothetical annual rental income value less 10%. Taxpayers' bills will then be 3% of that sum.

Under the system agricultural property will be subject to a rate of 2% of the open market capital value, and industrial property will be subject to a levy of 6% of the installed cost of plant and machinery.

In all cases, property valuations, for the year 2010 will be based on 2009 market values.

Browne informed that the legislation would be reviewed in parliament, and new Property Tax legislation would be tabled for approval in the first quarter of 2010. The government anticipates it will be enforceable from January 1, 2010. Bills will be sent to taxpayers on March 31, 2010, and payment will be required before September 15, 2010.

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