The Government's imposition of substantially higher property taxes on homeowners in its 2010 budget is producing a torrent of heated comments from several quarters of our diverse society. As the Guardian reported, the Government is expected to rake in $1 billion annually from this measure. The tax is undoubtedly regressive as wealthy homeowners and landlords will have to dig much deeper in their pockets.
I do agree that the system is antiquated. Gone are the days when a homeowner would have paid the Government $50-$100 annually on a?property valued about $300,000. However, the?Government?must take into account?the current depressed state of the economy and its negative impact on people with fixed incomes, pensioners and mortgage holders.?
For example, a homeowner now paying a $3,000 monthly mortgage has the State's valuators?assess his monthly rental value to be $5,000 monthly. This works out to an annual value of $60,000. Three per cent of this sum is $1,800 yearly or $150 monthly. In one shot the mortgage payment is effectively $3,150 monthly, plus already increased electricity rates.?
This example is the lower end of the bracket. In upscale areas,?one can calculate a monthly rental value of $20,000 and add that to a monthly mortgage payment of $5,000. On a more significant note, payment of property taxes must be commensurate with regular and reliable services of water, electricity, garbage disposal etc.
About two weeks ago, I spent five and half hours in the Barataria/San Juan office of the Member of Parliament, Joseph Ross,?to tell him directly that the water?supply?in the El Socorro area?has been deteriorating over the last three months.?
Almost every?single day the taps are dry from?evening to morning.
I note that the Member of Parliament for St Ann's East and former government minister Anthony Roberts has made a clarion call to WASA to "do something immediately to alleviate the pain and suffering of the people of upper and lower Santa Cruz."
Homeowners may feel very aggrieved to pay?increased property taxes?in areas where perennial flooding and its consequent damage place a severe financial burden on their shoulders. I expect the State to provide practical and objective solutions to this contentious issue. As American President Abraham Lincoln once stated, "No?man is good enough to govern another man without that
