In Trinidad & Tobago Property Tax is governed by the The Property Tax Act, 2009 and the Valuation of Land Act Chapter 58:03, amended by Act #17 of 2009. This Act replaces the Land and Building Taxes Act and Part V of the Municipal Corporations Act #21 of 1990. The Valuation of Land Act empowers the Commissioner of Valuations to value properties based on an Annual Rental Value.
BASIS OF ASSESSMENT
Annual Rental Value – The annual rent which particular land is likely to attract having regard to the purpose for which the land is actually used, occupied or tenanted, or where it is not actually used, occupied or tenanted, having regard to the purpose for which it is reasonably suitable.
Valuers take several factors into account in calculating the rental value of the property. Some factors include:-
Property Classifications – (Standard Home, Modern Home or Executive Home);
Quality of construction and condition of the property;
The location of the property and the market rental value of similar properties in the neighbourhood.
Example of Residential Annual Rental Value:
If a home can be rented for: $3,000.00 per month
Then the ‘Annual’ Rental Value = $36,000 ($3,000 x 12)
CALCULATION OF ANNUAL TAXABLE VALUE (ATV) AND PROPERTY TAX
The Annual Taxable Value is the annual rental value subject to the deductions and allowances which may be made by the Board of Inland Revenue. The Board may make deductions and allowances in respect of voids (periods when the property may not be rented) and loss of rent (where the landlord is unable to collect the rent) equivalent to ten per cent (10%) of the ARV.
The Annual Property Tax is calculated at three percent of the Annual Taxable Value.
Example of Residential Property Tax Calculation
Annual Rental Value = $36,000
Annual Taxable Value (ATV) = $32,400 ($36,000 – 10% for voids)
ANNUAL PROPERTY TAX = $32,400 x 3% (residential rate of tax)
$972.00 per year
$81.00 per month
To lean more about Property tax in Trinidad & Tobago please visit the Property tax Section of the Ministry of Finance