Seniors, others to get break from new property tax

Finance Minister Karen Nunez-Tesheira on Thursday made a strong defence of the new Trinidad and Tobago property tax, which has generated nationwide emotional attacks from opposition politicians, property owners and several interests groups, including trade unions.

At a news conference she said thousand of property owners who receive senior citizens, social disability and public assistance grants will be exempt from the proposed tax.

Legislation for the new tax system is to be laid in the Parliament Friday.

Social Development Minister Dr Amery Browne told the Trinidad Express 110,000 persons are now receiving all these grants. However he did not know how many of them own properties.

Nunez-Tesheira told reporters changes made to the Property Tax Bill, 2009 will now allow the Social Development Ministry to determine who receives the grants and which property owners in that group will qualify for a deferral of the tax.

She said the act "makes provision for deferral, a relief by deferral of the tax and it sets out the classifications of persons who would qualify on the basis of financial hardship."

She said anyone could get a deferral if the person passes a "means test" conducted by the Ministry of Social Development. She said the deferrals would be passed on to those who inherit properties, "once they qualify as persons suffering financial difficulty".

The minister told the Express the deferrals will be continuously assessed and will only end either on the death of the persons receiving them, or if their financial circumstances have improved significantly.

The list of exemptions in the original bill included lands used by the University of the West Indies "or its servants", churches, religious organisations, schools as defined by the Education Act, incorporated charitable organisations, public hospitals, asylums and cemeteries.

The categories remain but the government has included others including the Council of Legal Education, we have COSTTAAT, we have UTT and we also have any tertiary institution managed or supported by the Government.

She expects the new property tax will lead to an average residential property rate of $81 a month and dismissed critics who say the new tax will lead to more hardship for many.

The new regulations require the valuation of properties every five years as opposed to every three years under the existing law.