While speaking in Parliament yesterday, Finance Minister Audley Shaw announced a whopping hike in Jamaica’s property tax rates effective tomorrow, April 1.
The increase will see the flat rate (applicable to property with unimproved value up to $300,000) move from $600 to $1,000. Rates in respect of property with unimproved values exceeding $300,000 will attract 0.75 per cent for every additional dollar, up from 0.5 per cent. So for example, a property that’s worth $1 million will now attract $6,250 in taxes (up from $4,100).
Minister Shaw also announced the Government’s intention to take very strong steps and spend a significant amount of time on the area of tax compliance, both in respect of property taxes and other tax types. According to the Minister, there is currently a 55 per cent compliance rate for property tax payment in Jamaica, and the Government will be seeking to improve this significantly.
Property taxes are said to be used for the collection and disposal of solid waste as well as paying for street lights and administrative costs of parish councils. Jamaica’s property tax rates were last adjusted in 2005, when the Government did away with the previous value-band system.
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