You may recall that the most recent land revaluation exercise was completed in September 2013 and reflected the values of properties as at July 1, 2013.
The last one prior to this was completed in 2002.
Although the revaluation exercise was completed in September 2013, property taxes continued to be calculated on the old 2002 Valuation Roll.
This Government took the DECISIVE decision in 2017 to adopt the 2013 Valuation Roll, but with significant REDUCTIONS in the Property Tax Rates, moving from the higher rates of 1.5% – 2% to the much lower range of rates between 0.8% – 1.3%, on the new valuation roll.
The Revised Property Tax Rates
The adjustment to the property tax rates satisfies the criteria of Government’s broader Tax Reform objective of lowering and unifying the rates, as well as broadening the taxable base.
With the implementation of the new rates a large proportion of taxpayers will not suffer an increase of their property tax liability; approximately 210,512 or 27.1% will see a reduction in their property tax liability while another 61,835 property owners (8%) will experience no change in their property tax liability.
This means a total of 272,347 landowners will pay less or the same amount of property taxes as they did last year. The remaining property owners will experience some increases in their property tax liabilities, with some larger than others.
However, in the majority of cases, the increase in the property taxes is less than proportionate to the increase in the value of the land.