Property Tax Valuation
It’s that time of year again, and I don’t mean Christmas! Land tax bills will soon be issued, and the 2020-2021 year is a revaluation year. What this means, is that the Barbados Revenue Authority (BRA), will have completed their triennial revaluation process and while only the tax rates changed last year, the assessed site value (for vacant properties) or improved value (for built properties), may change on the land tax bills for this year resulting in an increase in tax due.
Taxpayers are required to pay the tax due or risk incurring penalties and interest but are also allowed to file an objection in writing, to the Revenue Commissioner within 21 days of the tax assessment issue date. Remember, objections can only be filed on the following grounds:
• the values assessed are too high or too low
• the lands which should be included in one valuation have been valued separately
• the lands which should be valued separately have been included in one valuation
• the person named in the notice is not the owner of the land
The BRA reviews objections received. For built properties the Officers will conduct an inspection and and review comparable sales transactions for residential properties, and / or use the income approach to value for commercial properties. On completion of their analysis, the Officer either reduces the site/property value and therefore the property tax is re-assessed (resulting in a refund to the taxpayer), or the objection is overruled.
If you are planning to file an objection, be sure to submit a recent market value report for your property as this will provide strong evidence for any requested reduction in value and tax assessed. If you need some assistance in getting this done, feel free to reach out to one of our Terra Valuers.