Tuesday February 9th, 2010
- Last update:12 hours 30 min ago
'Property tax reforms pressure for the poor'
Published: 15 Sep 2009
Students at the University of the West Indies in St Augustine, who rent from private home-owners, would be among the tenants forced to fork out more money for rent after residential property taxes were increased in the Budget, says Siparia MP Kamla Persad-Bissessar. The Opposition MP called on Finance Minister, Karen Nunez-Teshiera, to abort her plans to restructure the property tax regime, stressing that the proposed reform would bring a significant increase in property taxes, which would have what she described as “a devastating ripple effect on the population.”
She used the guidelines and data provided from the Ministry of Finance to calculate the Property Tax on four properties and compared it to the amounts that were paid by home owners at present. According to Persad-Bissessar, the increase with the new System of property tax ranged between 600 per cent to 100 per cent. She said: “None shall escape. Whether you are a property owner or a tenant of property or a squatter you will bear the burden.
“These increases will be massive, as people who only paid a couple of hundred dollars before, now may have to pay thousands dollars. Not only property owners, but renters, too, will be affected as rents will increase everywhere.” Persad-Bissessar was raising concerns about the effects of the new property tax plan during the 2009/10 national budget debate in the House of Representatives yesterday.
She noted that increases on the tax of residential properties would also lead to higher rent for what she referred to as “poor people who cannot afford a home.” She said property owners will be forced to raise their rates to pay the higher taxes. Persad-Bissessar said one of the consequences of an increase on the tax of residential properties would be higher mortgage payments since property taxes were included in mortgage payments.
She added that increases in taxes on industrial plant and machinery will push up the cost of manufactured goods. According to Persad-Bissessar, increases in the cost of manufactured goods would be passed on to wholesalers and retailers and to consumers in the end.
She said small business owners, who are tenants in shopping malls and other commercial properties, would suffer further from increases in their rent as landlords try to cope with the higher taxes on commercial properties.
It now start, PNM till we
It now start, PNM till we dead, ok lets see how much more dead.
Its time EVERYONE pays their
Its time EVERYONE pays their fair share in taxes you ppl do it in the developed places you live, but don't want to in T&T.
2020 here we come.
"We eh have water in a
"We eh have water in a week..." "De roads terrible up here, taxis refuse to ply de route..." "Even the police refuse to come in we districk..."
"Oh, an we is PMN till we dead..."
http://dsaltsman.blogspot.com/
i don't think higher taxes
i don't think higher taxes on already burdened people is a good idea.
Taxes are for the 'small'
Taxes are for the 'small' people...
Can we please also get clarification who exactly will receive 'exemptions' from paying these proposed property tax increases.
So far, we have been led to believe only those living in HDC houses. However, I would like the question clearly asked and answered (yes, I live in hope) if MPs/politicians are exempt from this tax. I am assuming that the PM residence - and of course the President's House - are exempt automatically. However, I would like to know if their 'second homes' are exempt too or whether Messers Richards and Manning will be paying these proposed increased taxes...?
I find a number of Ministers (all bar two and one opposition) are being incredibly quiet. Is this because they are 'exempt' from paying the increase, which is why they are staying stum, and hoping no one notices?
La Diva
It's so unfair to the poorer
It's so unfair to the poorer classes in this country who will suffer more because of this higher taxes.Home owners are going to feel it as they dip deeper into thier pockets and if this trickles down to the renters rent being raised,then homeowners may see a rise in tenants leaving owing thousands when they can't pay their rents.Iam one of them.Please,something has to be done about this bill.It should not be passed.
All the opposition
All the opposition politicians missing the point. None of them have taken the time to look at what is going to happen with the Industrial Property Tax. This is what she said:
In the case of industrial properties, the tax will be
6 percent of the annual taxable value which is based on
6 percent of the installed cost of plant, machinery and
associated buildings.
This will affect everybody and is in addition to what you going to pay on your house.
The cost of anything that is touched by machinery will go up. That means, to name a few, Bottle gas for cooking, Milk, Flour, Bread, Channa, Curry powder, Soft drinks, Corn curls and local chocolate and sweets. Alcohol and cigarettes will go up again.
Here is how they working the scam. No wonder she was laughing when she was saying it.
There is a factory in a building. The building is valued at ATV $60,000.00, tax is equal to $43,200.00. The installed cost of the machinery is $7 million. Tax $420,000.00. Add the two together $463,200.00. This business must pay almost half a million to the government. As business must make a profit or shut down, who is going to pay the extra? You of course!
How come no action from people like the Chamber of Commerce and the other Businessmen Associations, are they all asleep? Wake up people, sit up and take notice or soon you will have nothing.
markie hampton 1) Disagree
markie hampton
1) Disagree with the amt of tax.
2) A done deal, so eat less kentucky and other fast foods
3) DO NOT PLAY MASS! THEIR IS YOUR TAX MONEY :0 IGNORE THE CARNIVAL
4) MOVE BACK TO THE COUNTRY AND SOUTH AND TRAVEL UP IN THE WATER TAXIS, SO MANY OF THEM TO USE, TAX SHOULD BE CHEAPER IN THE SOUTHERN PART OF THE ISLAND.
5)STOP BEING BITTER ABOUT UWI LANDLORDS, THEY PUT UP WITH A LOT OF CRAP FROM SOME NON COMPLYING CLIENTS/TENANTS
There is one undiscussed
There is one undiscussed effect of the Property Tax and that is the effect on your WASA bills. These bills are based on the ATV of a property and with the new tax structure the ATV will automatically rise hence your WASA bill. Please take this seriously people and factor it in your discussions.
Regards,
Manohar
Manning is really working
Manning is really working towards achieving world status one before 2020.In Vancouver, where i live, the assessment is done annually by an independent body known as the British Columbia Assessment Authority. The assessment of a residence is based on the market value of the land and the house. The assessment is increased any area where a building is sold - market value.
if the resident or owner is not happy with the increased value of the property then he can appealed the increase to an independent review panel- if the matter is not in favour of the property owner, he has the right to appeal to the courts.
Business properties, and commercial residences and appartments have different assessments.
So, why are we fussing that the ordained leader wants to extract more money from the owners of homes and lands.
When a residence is taxed he has up to three years to be in default. After that the owner must pay up or the property goes up for sale!!!.
We pay for the police service, water, sewer, roads , free primary and secondary education - these are part of the property taxes. In a borough or city the tax is collected by the local government for the benefit of the local government.
We know that we like it so!! The PNM Government will collect millions more after this tax implementation. Mr. Manning must be congratulated on this move as he is opening the opportunity for businessmen and the rich to acquire the properties of the defaulters.
I for one knew that this property tax increases were coming!! I as a Trini to be bone will have to pay more for the AJOUPA I m have in a property!! in our past paradise.
Vancouver, Canada
Budget makers attempt
Budget makers attempt resembles the mentally subnormal playing monopoly. The difference here is that this is real life.
Government in its budget has moved to punishing people who have ambition to be financially independent. It seems that they want more people begging for old age pension and social assistance.
Reducing the taxes on the old or poor will not be enough since some people make a living renting property. These landlords in many instances already pay 25 percent tax , 15 percent vat,land and building tax,water rates , maintenance and security.
I wonder if the intention of the government is to have ALL citizens on the breadline. Why must John Public be forced to pay after government wasted so much on Summits and Tall buildings they really could not afford.It is like parents who drink out the household money and send their children out to beg. We NEVER asked for this heartless Monopoly game.