The Ministry of Finance yesterday started its public relations campaign to educate citizens on the Property Tax, as it seeks to demystify the tax and debunk what it describes as misinformation being fed to the public by the Opposition.
In the first instance, people are being advised against ripping up the forms because failure to submit them could result in a fine of $500 on summary conviction.
Speaking on CNC3’s Morning Brew yesterday, three valuators from the Valuations Department of the ministry, Shiva Kissoon, Emeris Howell and Dinelle Ramkoon, said the Valuations Act of 2009 gives the Commissioner of Valuations power to “require all land owners the authority to submit a return and all supporting information.”
If one fails to send in the form, the commissioner will send a letter indicating this and notifying that it must be done. The officers said not everything listed is required to submit the forms. However, you must submit a deed, or if you just purchased or are in the process of purchasing a home you need to submit the purchase agreement, or “if the person who you are buying the property from can give you a copy of their lease or deed, you can bring that in as well.” A WASA or electricity bill and the last land and building tax receipt is also required.
On the political platform, citizens are being advised against opening their doors to the assessors. But officers yesterday assured there is no need for concern. They said on receiving the return the valuation division will call to schedule a visit at least seven days before the visit. The assessors will also be in full uniform with ID and be accompanied by officers from the security agencies during the visit.
Under section 15-one of the Valuation of Land Act, the commissioner is authorised to “access land and buildings as well as documents to ascertain the value of the property,” they noted. If the home owner tries to hinder or obstruct the work of the assessor on a site visit, they will be liable on summary conviction to a further fine of $5,000.
Staff going out into the field will not be the people doing the valuation though. According to the ministry’s team, “The property owner will be seeing field assessors. They will take the information and return it to the valuation division, which has technical and professional public servants who will take the information and do the rental valuation of the property.” They assured that the Valuation Division Officers assessing the property value are “all professional staff trained in the UK, the USA and Canada.”
If you operate a small business from your home the officers said they will determine the rate applying both commercial and rental rates. If you are a squatter, the Board of Inland Revenue will decide on whether these cases will be taken into account given that the valuation is comprised of several pieces of information, including the owner of the property and the person in possession of the property.
For the purpose of valuation, homes are categorised as executive, modern and standard one and standard two. If on one piece of land there are numerous buildings, then each person occupying the buildings will have to fill out individual forms. If you inherited property the Property Act at section 29-2 makes provision for this, so you fill out estate instead of owner.
Deferrals are up to the BIR and must be made in writing. If a deferral is granted the new owner will be liable for the property tax for the period it was not paid, unless they can also show that they are unable to pay the tax. Section 19 of the valuation of land act deals with objections but even though the objection may go all the way to the Court of Appeal, officers say “you are still liable to pay tax during that period.
On how valuations are worked out, they said the “valuation division has an ongoing process of market analysis, so we use this to track rental as well as capital values.” They said they create an average for the area based on localities.
“We have the properties in a band and we adjust according to classification. This would take into consideration the accommodation, the finishes and age and condition of the building.”
For more info one can the ministry’s hotline at 621-9700 option 7, or to visit the website www.gov.tt
