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Be well-informed about the Municipal Solid Waste Disposal Tax

Tuesday, July 08, 2014 | By Knowledge Department
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What is the Municipal Solid Waste Tax?

A tax charged, levied and collected on the site value portion of improved property. Therefore, all property that includes any structures is subject to pay this tax. However, the tax is calculated on the site value only. This tax was deemed operational on September 01, 2013.

 What is the difference between Site Value and Improved Value?

  • Site Value is the value of the land only and does not include any structure.
  • Improved Value is the value of the land and any structures that sit on the land.

 Which agency is responsible for collecting this tax?

  • The Barbados Revenue Authority collects this tax and deposits it to the Consolidated Fund.

 How is tax calculated?

  • The tax rate is determined by the Minister of Finance and is currently set at 0.3% of site value.

See example below:

Site Value = $82,200

Tax to be paid: $82,200 * 0.3/100 = $246.60

Amt. per instalment = $246.60/2= $123.30

When is this tax due?

This tax may be paid in 2 installments of 50% each installment. The first installment is due on June 30th and the second installment due December 31st each year.

However, for 2014, the Commissioner has delayed the payment due date of the first installment to July 28th. The payment due date for December remains as stated.

Where can these bills be paid?

These bills can be paid at: Weymouth Corporate Centre, Roebuck Street, St. Michael; the Treasury Building, Bridge Street, Bridgetown; Warrens Tower II, Warrens, St. Michael; Southern Plaza, Oistins, Christ Church and Holetown, St. James.

Are there any penalties for late payment?

A late payment fine of 5% is levied on any unpaid amount past the stipulated due date. In addition, 1% interest is charged for each month the due portion remains unpaid.

*Please note that there is no fine or interest on the portion that is not due. 

Liability for payment of the tax is not exempted because you did not receive a bill notice. If you have not received a bill, contact the Barbados Revenue Authority.

Would those who rent properties be required to pay?
The owner of the property is liable for the taxes levied.  

Are there any exemptions from paying i.e. charitable organizations or government institutions?
There are NO exemptions. Any party that wishes to be considered for remission or refund should apply to the Minister of Finance. However, the taxes should be paid and the Minister will remit or refund part or all of the taxes at his discretion.

Are there any occasions when the full tax is required?
The vendor must pay the total Solid Waste Tax, i.e., both installments, before a property is transferred.

Have Land Tax Valuation notices been issued as yet?

Although the notices have not been issued, the Solid Waste Tax bill shows the site value and improved value of the property. Owners may notice a change in those values over last year’s. This is because 2014 is a Land Tax revaluation year.

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