By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Indira Wright, manager in the Real Property Tax Unit of the Department of Inland Revenue, said many individuals have come in to the department to take advantage of the Stamp Tax Amnesty and the VAT exemptions for first-time homeowners.       

The amnesty allows homeowners to pay stamp tax based on the value of the land when it was purchased.

Once the amnesty ends on November 30, property owners will have to pay stamp tax on the current assessed value of their property.

Ms Wright said the new portal will expedite the process for persons that with to take advantage of the amnesty period and exemptions.

“Thus far, it's been going really well,” said Ms Wright.

“We've even introduced a new portal so that we can go ahead and quicken the process of your exemption period for that. In addition to that, we also have the amnesty period, and this amnesty was put into effect for those persons who did not have the opportunity to register their properties in years past. We've given them the amnesty to come into the VAT stamp department get your paper stamped, and you have until the end of November to do so at the same price as the value as when you first got your conveyance.

“We’re doing everything necessary to make sure that you're getting that done, the VAT stamp exemption, as well as those who never registered their property.”

She warned that failing to register your property with the department will cause future issues and encouraged persons to take advantage of the initiate.

“Surprisingly, we have tons of Bahamians coming in,” said Ms Wright.

“We always say the same thing over and over. If you don't register your property, that's a problem for you within the future. So, take advantage of what we're offering now and register.”

She said there are generations of Bahamians paying real property tax debts and encouraged homeowners to pay their balances before they are due in March to capitalise on the 10 percent “early bird” discounts.

“There's a time frame in which you have to pay property taxes,” said Ms Wright.

‘I always encourage persons, if you know you have real property taxes, which all Bahamians do, come in and catch the 10 percent which is the early bird special, and then after that, you don't know how it's going to affect your future.

“You have persons carrying over taxes that makes no sense. You have generations and generations with debts. Come and deal with what you have now, so that you can get this out of the way, we have easier processes. You must be encouraged, because we're now empowering our Bahamian people. More knowledge, more power. The more you know, the more you want to get your business involved. So, I'm encouraging, encouraging the Bahamas at large to come and deal with your properties.”

Dexter Fernander, operations manager at DIR, explained for first-time homeowners there is a VAT exemption and waved real property taxes for the first five years.

He added that senior citizens can receive a 50 percent discount on their real property taxes for an owner-occupied property on properties values less than $1.5 m.

“There are some discounts for the first time owner, you have the exemption,” said Mr Fernander.

“There is an exemption that the property is up to 300,000, and as you are in that first home, you have five years on the real property tax side. You are exempted from real property tax.

“Senior citizens over identified by National Insurance, or if you reach the age of 65 you have a 50 percent discount on your owner occupied, not your rental units or your commercial units, your owner occupied.

“The intent of the law was to assist those that are in the middle class and the lower income bracket. If your house is $1.5 m you are not considered lower class, there's a cap. You would get a discount up to $3,250 and then there's an early discount if you pay any billing cycle, if you pay before March 30, there is a 10 percent discount on that property.”