Tax Administration Jamaica (TAJ) is advising land owners that the new property tax regime, recently announced by the Government, takes effect on April 1, 2017. This coincides with the April 1 property tax due date for fiscal year 2017-18.
As a result of the reform of the property tax system, the number of value bands has been expanded to nine (9), with reduced tax rates ranging from a flat rate of $1,000 on properties valued at $400,000 or less, up to high of 1.3% on properties valued over $30,000,000. The lowered rates are being applied against 2013 property valuations and will also now apply on a graduating scale allowing property owners to benefit from the rate applicable to each preceding value band. The ranges are as follows:
- for the first $400,000.00 ... ... $1,000.00
- for the next $400,000.00 ... ... 0.80%
- for the next $700,000.00 ... ... 0.85%
- for the next $1,500,000.00 ... ... 0.90%
- for the next $1,500,000.00 ... ... 1.05%
- for the next $2,500,000.00 ... ... 1.10%
- for the next $5,000,000.00 ... ... 1.15%
- for the next $18,000,000.00 ... ... 1.25%
- for every dollar thereafter ... ... 1.30%
Based on the adjustments, over 272, 000 property owners will benefit from a reduction in property tax assessed, or experience no change in the amount charged in 2016, while other persons will see increases of varying percentages.
There are mechanisms in place by which persons may object to their property valuation or to seek relief from Property Tax, where special circumstances apply. Property owners may serve a Notice of Objection to the Commissioner of Land Valuation in respect of their valuation. Persons may also apply for a special discretionary relief based on hardship; for statutory relief where the potential use of the land differs from its current use; or for agricultural de-rating in respect of agricultural lands.
Persons are reminded that property tax payments may be made in half-yearly instalments on April 1 and October 1 or in quarterly instalments April 1, July 1, October 1, and January 1. Payments in full, or any instalment should be made by the end of the calendar month in which the amount is due. Property owners are advised that they may also consider to make the payments on a monthly basis. It should be noted however that periodic payments do not apply to the flat rate charge of $1,000, which should be paid in full by April 30.
To facilitate payments TAJ has several channels of payment available. Payments may be made online via the Tax Portal www.jamaicatax.gov.jm; at any of the 29 tax offices island wide; at announced out-stations during the month of April to June; and via two recently commissioned Mobile Tax Collection Units, operated on a scheduled basis in partnership with the Ministry of Local Government and Community Development.
For added convenience, during the month or April, in addition to the Portmore Tax Office, several of TAJ’s Tax Offices will be open to the public on Saturdays from 10:00am to 4:00pm.
For further information persons may contact the Tax Administration’s Customer Care Centre at 1-888-Tax-Help (1-888-829-4357) toll-free or visit the Property Tax information hub available on the TAJ website www.jamaicatax.gov.jm.