Andrea Perez-Sobers
Senior Reporter
andrea.perez-sobers@guardian.co.tt
The revised amounts owed by homeowners for property tax are currently being mailed out by the Ministry of Finance and all previous notices dated before March 6, 2024, are now null and void.
In an update on its website on Tuesday, the Ministry of Finance told residential property owners the Property Tax Act was amended to reduce the rate of tax payable (%ATV) from 3 per cent to 2 per cent.
Earlier this year, many property owners received their Notices of Assessment, which reflected the amount of tax owed, based on the 3 per cent calculation.
Tuesday's notice said that tax payments are now due by September 30, 2024 and amended notices of assessment were currently being mailed out.
Commenting on the move, economist Dr Indera Sagewan said it is evident that based on the outcry by many people that the valuation process was flawed, it has been redone.
Sagewan pointed out that the public is still left in the dark concerning how it was done.
“Only on Tuesday I received, for the first time actually, a valuation from the valuation department and it is less than the previous valuation. It is less by about one-third, which is interesting because when I spoke in the public space, I had argued that my valuation was overvalued by at least 33 per cent.
“So that is the new valuation I got. I can't say whether everyone's new valuation would be trending downwards, but I would imagine that is the case,” she explained.
The second good news she said is that the percentage itself has been moved from 3 per cent to 2 per cent.
“When you get the valuation from the valuation department, what you do is you take 90 per cent of that and then you calculate 2 per cent of that answer and you will arrive at what the new valuation is,” Sagewan said.
However, she highlighted that the issue of how it is calculated remains a mystery to everyone and the valuation department must explain such.
Also expressing views on this development, Economist Dr. Vaalmikki Arjoon said while lowering the tax rate does indeed help to make the tax a bit more affordable for many, some questions have arisen.
Such as, where will this foregone revenue be raised alternatively?
Additionally, he said any benefit to the taxpayer from lowering the tax rate will be nullified if the authorities still have not rectified the numerous instances of unfair and overvalued property valuations.
Indeed, Arjoon indicated the fairness of these valuations is crucial, as some individuals have received inflated rental valuations, while others have received conflicting notices for the same property.
“Lowering the rate by 1 per cent may not adequately make up for having to pay an unjustly higher tax due to an overestimated property value. Also, what is the status of the tribunal that was set up to address valuation objections? When will it be established? The legislation allows the Commissioner of Valuations up to one year to respond to any objections. Without fair valuations, property owners might have to pay unjustly high taxes until their objections are resolved,” Arjoon stressed.
He noted that extending the state’s deadline for sending assessment notices to June 30, also suggested possible delays in completing all assessment notices.
“Have these delays been resolved? Is the Inland Revenue Division sufficiently staffed and resourced to prepare these assessments and manage collections? Do they have the resources to receive the taxes - what mode of payment is available? An online payment facility should be established promptly to facilitate tax payments,” he added.