Amnesty For Real Property Tax Dodgers

If you're planning to sell your Bahamas home and you owe real property tax, you may qualify for tax relief.

Even if you are not planning to sell, but you have property tax arrears now is a good time to act. You have to move quickly, though.

When you sell your home, your back taxes are deducted from the amount you receive.

However, Prime Minister Christie has announced the following tax breaks for registered property owners:

• Owners who are in arrears by no more than three years will only have to pay 50 per cent of the total owed in both assessment and surcharges, provided payment is made by June 30, 2013;

• Owners who have accumulated arrears for more than three years will pay 100 per cent of the surcharges only, provided payment is made by December 31, 2013.

To reward residential property tax payers who are up to date with their payments, the Government will rebate five per cent of the annual real property tax assessment, provided the owners remain current with their payments over the next three years.

The measures are designed to bolster revenue collection and at the same time help Bahamas home owners in arrears.

Owner occupied properties valued under $250,000 are exempt from real property tax.

The tax on owner occupied properties valued from $250,000-$500,000 is 0.75 per cent. It's one per cent on property valued over $500,000.
Bahamians who own property in the Family Islands are exempt from paying real property tax.

Government plans to introduce a comprehensive programme to crack down on tax dodgers when the Budget is presented in a few months.

So if you've avoided paying your taxes, time's running out. As we like to say in the Bahamas, “Time is longer than rope,” meaning things will catch up with you.

This is an ideal opportunity to save money and to help Government collect much needed revenue.

(Mike Lightbourn is president of Coldwell Banker Lightbourn Realty)