Land Tax Assessment 2008
Many of you would have received a new Land Tax Assessment notice over the last few weeks. Some assessment notices are still in the mail so stand by if you have not yet received yours. We have had a number of calls over the last week from clients expressing surprise at the revised tax payable. Here is our suggestion for a plan of action once you receive your assessment.
(1) Review it for reasonableness. If you have a 10 to 15% increase in value since the last assessment chances are you do not have a basis for objection.
(2) Ask yourself the question - would you sell the property for the assessed value? If the answer is no because you would expect a higher price - again you probably do not have the basis for an objection.
(3) If the valuation appears unreasonably high and you would happily sell at that price or lower, then you may need to make an objection.
(4) To make an objection simply follow the instructions on the Land Tax Objection Form in the margin to the left of this article. Please note that you can indicate that you intend to submit a valuers report at a later date if it is not available immediately.
In most cases a valuation report from a recognized valuer will be needed to support your objection. Obvious errors (as can happen) do not need such support. But you do have to look at the cost benefit analysis on having a report completed. Generally valuers charge in the region of 0.2% of the value of a property as the fee. At a value level of $1.0 million and above, a variance of as little as 10% in the assessed value will compensate for the cost of the valuation report, and variances larger than this will give significant benefit to the taxpayer immediately.
In the final analysis there are many good reasons to make sure that the assessed value recorded on the land tax roll is accurate. Objecting because you think the tax to be paid is too high is not a reason for objecting to the assessed value. It may be a reason to lobby for an adjustment in the tax rate - but not the assessed value.
Property values in Barbados have changed substantially in the last 3 to 5 years. This may well be a good time to have your property assessed by an accredited valuer so that you and your family know the value of this significant asset.
Please contact any member of our valuation team should you need to get a professional report completed on your property. We look forward to serving you.
Yours truly,
Andrew W. Mallalieu, CPA MRICS Chartered Surveyor
(1) Review it for reasonableness. If you have a 10 to 15% increase in value since the last assessment chances are you do not have a basis for objection.
(2) Ask yourself the question - would you sell the property for the assessed value? If the answer is no because you would expect a higher price - again you probably do not have the basis for an objection.
(3) If the valuation appears unreasonably high and you would happily sell at that price or lower, then you may need to make an objection.
(4) To make an objection simply follow the instructions on the Land Tax Objection Form in the margin to the left of this article. Please note that you can indicate that you intend to submit a valuers report at a later date if it is not available immediately.
In most cases a valuation report from a recognized valuer will be needed to support your objection. Obvious errors (as can happen) do not need such support. But you do have to look at the cost benefit analysis on having a report completed. Generally valuers charge in the region of 0.2% of the value of a property as the fee. At a value level of $1.0 million and above, a variance of as little as 10% in the assessed value will compensate for the cost of the valuation report, and variances larger than this will give significant benefit to the taxpayer immediately.
In the final analysis there are many good reasons to make sure that the assessed value recorded on the land tax roll is accurate. Objecting because you think the tax to be paid is too high is not a reason for objecting to the assessed value. It may be a reason to lobby for an adjustment in the tax rate - but not the assessed value.
Property values in Barbados have changed substantially in the last 3 to 5 years. This may well be a good time to have your property assessed by an accredited valuer so that you and your family know the value of this significant asset.
Please contact any member of our valuation team should you need to get a professional report completed on your property. We look forward to serving you.
Yours truly,
Andrew W. Mallalieu, CPA MRICS Chartered Surveyor
