Letter: PNM fooling the people on property tax

The PNM is intent on fooling the burgesses of the municipal corporations into believing that the three per cent reduction in the percentage rate in the new property tax (PT) from the original seven per cent will reduce their house tax.

The PT will be assessed on the market-determined rental values of 2009. It will be not based on the existing 2004 rental values on which the burgesses pay house tax at present.

So that while the percentage PT rate will decrease, the annual rateable values (ARV) of these properties that are market determined in respect of the year 2009 will escalate sometimes ten times given the gap between supply and demand for accommodation in 2009.

Look at the classified advertisements for empirical confirmation of this fact.

Accordingly while the people of San Fernando at present pay seven per cent of a 2004 rental value determined house tax, in 2010 they will now pay a property tax that is three per cent of a 2009 rental value determined annual taxable value (ATV).

That is to say, for example, while they paid seven per cent of $3,000 ($210) in 2009 they will now pay three per cent of $30,000 ($900) in 2010.

That according to PNM maths is a tax reduction measure that they are spending $100 million in a consultancy to reform for reform sake.

Stephen Kangal | via email