Frequently asked questions about property tax

DO YOU have questions about property tax? If the answer is YES, then here are some frequently asked questions about property tax.

1. What is property tax?

Ans: Property tax, also called land tax, is a charge levied on property listed on the Valuation Roll in Jamaica.

2. Who pays property tax?

Ans: All persons in possession of land; such a person is defined by the Property Tax Act as the owner, occupier, mortgagee in possession or other person in actual possession of such property.

3. When does property tax payment become due?

Ans: Property tax payment becomes due on April 1, at the start of each financial year. However, property owners or persons in possession of the property have until April 30 to make payment, after which a 10% penalty is charged.

4. Are any property owners exempt from paying property tax?

Ans: Yes. (See Property Tax Relief article on Page V)

5. How is land valued?

Ans: Valuation in Jamaica is based on the unimproved value of the land, that is, the price which the owner would expect to receive if he were selling the land alone, disregarding the value of any improvements such as buildings and crops. Several factors determine the (unimproved) value of land, including size of the parcel of land, zoning and type of land, potential for development, topography (elevation & other surface features), soil classification, access to municipal & commercial services, and neighbourhood characteristics.

6. Which agency is responsible for land valuation?

Ans: The National Land Agency is responsible for valuation of properties on the Tax Roll. The last exercise was done in 2013.

7. How do persons check previous balances on their property tax?

Ans: Property tax balances going back seven years may be checked using the TAJ’s online Property Tax query feature via www.jamaicatax.gov.jm. Property owners must have their valuation and strata lot number (if applicable) ready to check the status of their property tax, going back seven years (move).

8. What if I don’t have my valuation number on hand. Where can it be located?

Ans: Once you have made property tax payments and you are in possession of a receipt. Your valuation number is located at the top (left-hand side) of your receipt. This can also be seen on a property tax notice, even an old one, or on a payment reminder. If you are unable to locate your receipt and you are in possession of your volume and folio number found at the top right-hand corner of your title, then you can enter the information on the National

Land Agency’s (NLA) website at www.nla.gov.jm. Click the ‘elandJamaica’ online property information system to obtain the relevant information on your property, including your valuation number. The information may also be provided by calling the TAJ’s Customer Care Centre at 888-TAX- HELP.

9. What if you disagree with the assessed value of your property?

Ans: You may serve a Notice of Objection on the prescribed form at the Commissioner of Land Valuation within 60 days after receiving the Notice of Valuation. You may also complete a Declaration of Value form, indicating the amount that they believe is the more accurate value of the land. The landowner should (is required to) pay 75% of the tax liability while the objection is being considered.

10. What actions can the Government take to recover unpaid property taxes?

Ans: Under the Tax Collection Act, the tax collector may take the following actions:

• Issue summons for taxes and penalties owed. If persons fail to attend court, a Warrant of Disobedience may be issued by the court, or an ex parte order can be made (i.e., an order for payment made in the person’s absence).

• Where the court makes an order for payment (ex parte or otherwise), in the case of non-payment of the tax, the defaulter may be imprisoned for up to three months.

• Levy warrant or distrain on goods/chattel – Seizure of goods and auction of same to recover outstanding property tax.

• Levy warrant or distrain on securities, etc – Seizure of money, bonds, securities, etc, and disposal of same to recover outstanding property tax.

• Lien on the property – This blocks the person from transacting any business with the property, such as sale or collateral.

• Forfeiture of property – The property may be seized and sold to recover property tax owed.

• Collect from persons in possession – Payments may be demanded from persons in possession of or occupying the property, e.g., owner, occupier, renter, mortgagee, lessee or other person in actual possession of the property.

• Garnishment – Here the Commissioner General of TAJ issues a Notice of Garnishment (without going to court) and serves it on a third party who has funds for the taxpayer, instructing that the payments be made to TAJ instead.

11. What are the laws that relate to property tax?

Ans: The Property Tax Act; Land Taxation (Relief) Act; The Land Valuation Act; The Tax (Collection) Act.

12. What is property tax intended for?

Ans: Property taxes are intended to finance property-related services in communities throughout Jamaica. Property tax pays for:

• Maintenance and expansion of street lighting,

• Collection and disposal of solid waste,

• Community infrastructure and civil improvements,

• Administration of local authorities,

• Repairs to fire stations, and rehabilitation of parochial/farm roads.

13. Where can you get additional information?

Ans: For more information, forms and guidance on Property Tax operations, persons may contact the Tax Administration Jamaica Customer Care Centre at 888-TAX-HELP (888-829- 4357) - local; 1-888-GO-JATAX (1-888-465-2829) – USA, or visit the Property Tax Hub on the TAJ website at www.jamaicatax.gov.jm, or email taxhelp@taj.gov.jm.

Persons can also contact TAJ on our social media pages:

• Facebook: www.facebook.com/jamaicatax

• Instagram: @jamaicataxonline

• X: @jamaicatax

• YouTube: www.youtube.com/user/watchtaj

14. I intend to buy/transfer a property. What do I need to do?

Ans: You should consider engaging the services of an attorney-at-law to ensure that your interests are fully addressed. In any event, you should ensure that the vendor of the house is in a position to transfer title to the property upon completion of the sale. Once this has been ascertained, you will need to enter into an Agreement for Sale. The vendor’s attorney usually prepares this agreement for the signatures of the vendor and the purchaser. Upon execution of the agreement, the purchaser is usually required to pay the vendor a deposit of 10%; the agreement may require a further payment of at least 5% to facilitate the payment of stamp duty and transfer tax chargeable on the transaction. The balance of the purchase price is usually payable on completion.