HOTLINE: 612-9700 option 7
Property Tax HOTLINE: 612-9700 option 7

Fast Facts on Property Tax

Introduction

  1. Is property tax a new tax?
  2. No, property tax is not a new tax. Property tax has been in existence in Trinidad and Tobago since pre-independence. The government has waived the payment of property tax for the period of 2010-2015, as such the tax is payable with effect from 2016.
  1. How is the new system different from the one last paid in 2009?
  2. More equitable
    • Tax rates are now standardised throughout the country.

    User friendly

    • Information on the Valuation process and the Assessment process will now be made available online;
    • Persons will be able to make payments at any District Revenue Office regardless of where the property is located;
    • Notice of Assessment (Invoice) will be computerized.
  1. What is the Land Valuation and Property Tax Process?
    1. The Valuation Return Form (VRF) will be delivered to property owners via post or forms can be collected from any Valuation Division office or downloaded from the Ministry’s website
    2. Property Owners/Agents may complete the VRF and submit to any office of the Valuation Division
    3. The Valuation Division may conduct a physical assessment of the property. If a physical assessment of the property is required, the Commission of Valuations will give a written notice.
    4. The Valuation Division will then calculate the Annual Rental Value (ARV)
    5. The Commissioner of Valuations creates the Valuation Roll
    6. The Commissioner of Valuations will serve notice of the valuation to the owner
    7. Owner within 30 days after service of the notice of valuation, may post or lodge with the office of the Commissioner of Valuations, an objection in writing against the valuation
    8. After the creation of the Valuation Roll (on the basis of annual rental value) this will be forwarded to the Inland Revenue Division (IRD)
    9. The IRD will calculate the Annual Taxable Value (ATV) (see question 12)
    10. The applicable rate of tax will be applied to the ATV
    11. The IRD will invoice (Notice of Assessment) the property owner
  1. Is it mandatory to submit the full list of supporting documents?
  2. No. Property Owners are currently being asked to submit their Valuation Return Forms along with copies of as many of the supporting documents as possible.  Documents should be submitted in a sealed envelope to any of the eight Valuation Division offices.  The supporting documents are not mandatory.  However, the Deed/Certificate of Title; WASA Bill, T&TEC Bill and previous Land and Building Taxes receipts are most important as these would assist the Commissioner of Valuations in determining the Annual Rental Value of the property.
  1. What is the Annual Rental Value (ARV)?
  2. The Annual Rental Value (ARV) means the annual rent which a particular parcel of 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. If the property owner knows this value, they may insert it on the form, otherwise it can be left out and will be inserted by the Commissioner of Valuations.
  1. What is the Annual Taxable Value (ATV)?
  2. The ATV 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 and loss of rent equivalent to ten per cent of the ARV.
  1. Do all properties in Trinidad and Tobago have a rental value?
  2. Yes, all properties in Trinidad and Tobago have a rental value. Every property has the potential to be rented-whether the intention of the owner is to rent it or not. The rental value is determined by the rent the property will obtain on the open market (if it were put up for rent).
  1. What is the Valuation Roll?
  2. The Valuation Roll is a listing of all properties in Trinidad and Tobago. This Roll is prepared in accordance with Sec. 16 (1) of the Valuation of Land Act Chpt. 58:03.

 

Property Valuation

  1. How is the value of my property calculated?
  2. Valuers take several factors into account in calculating the rental value of the property. Some factors include property classifications, quality of construction and condition, the location of the property and the market rental value of similar properties in the neighbourhood.
  1. Who is responsible for valuing my property?
  2. The technical and professional staff of the Valuation Division. This will be done at NO cost to the property owner.
  1. How does the Valuation Division get information on my property?
    • From the information provided by the property owner/agent on the Valuation Return Form (VRF);
    • Commissioner of Valuations may also request supporting documents from property owners/agents;
    • Information will also be collected by Field Assessors from the Valuation Division who will visit properties;
    • As outlined in the Valuation of Land Act, any department of Government other than the department concerned with the administration of the Income Tax Act shall, at the prescribed time and in the prescribed form, furnish to the Commissioner such information in possession of their departments as may be required by the Commissioner.
  1. Have field assessors begun to visit properties?
  2. Property Owners are advised that Field Assessors of the Valuation Division have NOT commenced field visits. Should additional information be needed by the Commissioner of Valuations, property owners would be notified of further review and Field Assessors would be sent to the property. When field visits commence –Field Assessors will be uniformed, display proper identification and will be accompanied by security. Citizens are encouraged to request sight of such identification before allowing Field Assessors unto their properties.If a property owner believes that someone who has approached their home, is not a legitimate officer of the Valuation Division they should immediately contact the Trinidad and Tobago Police Service at 999.
  1. How often will a valuation be conducted on my property?
  2. A new valuation shall commence every five (5) years. However, if during that period any material change is done to the property such as change of ownership, subdivision, improvements or any other changes as identified in section 9 of the Valuation of Land Act, the Commissioner of Valuations may make changes to the Valuation Roll as necessary.

 

Property Tax Calculation

  1. How is the annual property tax of my home calculated?
  2. For homes (residential properties) the tax rate is 3%. For commercial properties the rate is 5%. The Annual Rental Value will first be calculated.  This figure is then used to calculate the Annual Taxable Value and the rate of tax (3% for residential or 5% for commercial) is then applied to determine the Tax payable.

    Calculation of Annual Rental Value

    Example of Annual Rental Value Calculation

    Home can rent for: = $3,000.00 per month
    So, ‘Annual’ Rental Value = $36,000 ($3,000 x 12)

    Calculation of Annual Taxable Value (ATV) and property tax

    Example of Property Tax Calculation

    Annual Rental Value = 36,000
    Annual Taxable Value (ATV) = $32,400 ($3,6000 – 10% for ‘voids’)
    Therefore,
    ANNUAL PROPERTY TAX = $32,400 x 3% (residential rate of tax)
    = $972.00 per year
    or
    $81.00 per month

     

  1. Will all properties on the same street have the same property taxes to pay?
  2. Not necessarily. The rental values of houses, on the same street, may vary according to classification of the building, floor area of the building, age, condition and internal layout of the building.
  1. If I operate a small business from my home, do I pay residential property tax
    or commercial property tax?
  2. Property will be assessed by its proportional use.
  1. Can property tax be deferred?
  2. As outlined in the Property Tax Act, the Board of Inland Revenue may upon the application of the owner of land authorize the deferral of the payment of the assessed tax on the land on the grounds of the impoverished condition of the owner and his inability to improve his financial position significantly by reason of age, impaired health or other special circumstances, that undue hardship to that owner would otherwise ensue.
  1. How should this application for deferral be made?
  2. The application shall be made in writing in the form prescribed by the Board of Inland Revenue.

 

Payment Information

  1. When will I know how much I have to pay?
  2. The Board of Inland Revenue shall issue a notice of assessment identifying the tax payable and the time when and where such tax is to be paid as well as the penalties and consequences in failure to pay the tax. The notice shall also state the right to object to the assessment and the procedure to be utilized in making an objection.
  1. Where can I pay property taxes?
  2. You can pay at any District Revenue Office (even in a region different from where your property is located).
  1. Will pensioners be exempt from paying property tax?
  2. No, pensioners would not be exempt from paying property tax. However, property tax may be deferred upon application and approval by the Board of Inland Revenue.
  1. Can you request a deferral of tax due to hardship?
  2. The Board of Inland Revenue may, upon application of the owner of land, authorize the deferral of the payment of the assessed tax on the land due to the impoverished condition of the owner and his inability to improve his financial position significantly by reason of age, impaired health or other special circumstances.
  1. What properties are exempted from the property tax?
  2. The Property Tax Act provides for exemption of certain properties such as places of worship, schools, land owned, occupied and used exclusively by an incorporated charitable institution.
  1. As a renter, will the Property Tax affect me?
  2. The Ministry of Housing is currently drafting amendments to the Rent Restriction Act which would address the impartiality of rents. In addition, property owners should be aware that increases in rent on leased properties would result in higher rental values. This will therefore be reflected in their annual tax payable.

 

RATES OF TAX (CATEGORIES)

The Property Tax is calculated by taking a percentage (rate of tax) of the Annual Taxable Value of all Land.

The new tax rates are as follows:

Residential Commercial Industrial Agricultural

 

RESIDENTIAL PROPERTIES

Valuers take several factors into account in calculating the unit value of the property which is used to calculate your property’s rental value.

Property Classifications:

N.B. The classification would depend on factors such as quality of construction and condition.

Example of Residential Property Calculation

Home can rent for: $3,000.00 per month
So, ‘Annual’ Rental Value = $36,000 ($3,000 x 12)
Annual Taxable Value (ATV) = 36,000 – 10% (for ‘voids’) ($3,600)
= $32,400
Therefore,
ANNUAL PROPERTY TAX = $32,400 x 3% = $972 per year, or
$81.00 PER MONTH

TABLE CALCULATING RESIDENTIAL PROPERTY TAX

Please find below a table which will provide examples of Residential (3%) Property Tax.

For e.g. if a property can be rented monthly for $1,500.00
your Annual Property Tax would be $486.00

Monthly Rental Value $ Annual Rental Value $ Annual Taxable Value $ Annual Property Tax $
1,500.00 18,000.00 16,200.00 486.00
2,000.00 24,000.00 21,600.00 648.00
2,500.00 30,000.00 27,000.00 810.00
3,000.00 36,000.00 32,400.00 972.00
3,500.00 42,000.00 37,800.00 1,134.00
4,000.00 48,000.00 43,200.00 1,296.00
4,500.00 54,000.00 48,600.00 1,458.00
5,000.00 60,000.00 54,000.00 1,620.00

 

For further information please contact the Valuation Division Hotline at (868) 612-9700 option #7

 

 

Residential rate 3% commercial rate 5% industiral rate with building 6% industiral rate without building 3% agriculture rate 1%
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