On the eve of the April 1 property tax due date and the new rates taking effect, the issue of property tax matters has become a stark reality for property owners. As a result more persons are asking more questions about what does this mean for them. Tax Administration Jamaica (TAJ) will address a few more of these frequently asked questions about property tax.

How is property tax calculated?

The increased property tax rates take effect for the financial year 2013-14 on April 1, 2013. As a result, all properties with an unimproved value of up to J$100,000.00 will be charged a flat rate of J$1,000.00. Properties with values exceeding J$100,000.00 up to J$1,000,000.00 will attract an additional 1.5% for every additional dollar above J$100,000.00. Properties with values exceeding J$1,000,000.00 will attract an additional 2.0% for every additional dollar. The following example looks the property tax to be paid on land valued at $600,000, applying the new rate:

Unimproved Property Value: $600,000.00

First $100K: $ 1,000.00

Between $100K and $1M @1.5% ($500K x 1.5%) $ 7,500.00

Portion over $1M @ 2.0% $ 0.00

Total Tax due (new): $ 8,500.00

How can persons find out how much to pay?

Each year a Notice of Assessment is issued to property owners across the island. This reflects the current amount to be paid for the financial year 2013-14, as well as any arrears owed for previous years. Persons may also get the information from the TAJ Customer Care Centre at 1-888-TAX-HELP (1-888-829-4357) or on the website www.jamaicatax.gov.jm. It is best to have the valuation number on hand, which can be found on a notice or property tax receipt from a previous year. They may also get a print out of their statement at any tax office.

Does the full amount have to be paid at once?

Particularly with the increase in the rates, property owners are reminded that payments may be made in half-yearly instalments on April 1 and October 1 or in quarterly instalments April 1, July 1, October 1, and January 1. Payments in full, or any instalment thereof should be made within the calendar month in which the amount is due. It should be noted however that periodic payments do not apply to the flat rate charge of $1,000, which is due on April 1 and must be paid in full by April 30.

Please note that If the tax is not paid within the applicable month, then payment of tax, penalty and interest may be enforced as provided under the Law. Unpaid taxes will incur a penalty charge of 10%, and interest charge of 15% per annum until paid in full.

How can payments be made?

Paying Online: The most convenient option is to pay online via the Jamaica Tax Portal (JTP) at www.jamaicatax-online.gov.jm. It is recommended that property owners use this alternative as it gives them access, both locally and from overseas, to make payments on a 24 hour basis from their homes, offices and elsewhere using a credit card. This means NO MORE WAITING IN LINE.

To log on to the JTP persons need to enter their username and password. Once logged into the system, persons should then select the option Pay Property Tax and follow the instructions to make payment. A reference number will be generated at the end of the transaction, which can be saved or printed for your records. Online users should ensure that they have the valuation number(s) of the property(s) available. This can be seen on a property tax notice, even an old one or on a previous property tax receipt. The information may also be provided by calling the TAJ’s Customer Care Centre at 1-888-TAX-HELP.

Paying Inline: Customers may visit any of the 29 tax offices located across the island to make payments, using cash, credit or debit cards. Additionally, the King Street, Cross Roads, Constant Spring, Montego Bay, Spanish Town and Savanna-La-Mar Tax Offices are equipped with electronic drop boxes which may be used to make payments by cheque. Please note the valuation number(s) is also necessary when using this option.

Paying at outstations: During the months of April to June, TAJ normally conducts “out-station” operations, particularly in the rural areas. Details of schedules and venues are available from the local tax offices. However, “out-station” operations only accommodate non-cash transaction; therefore ONLY debit or Debit cards will be accepted. A receipt will be given for ALL payments made.

TAJ is appealing to property owners to make every effort to settle their property taxes. Persons are also advised to speak with the compliance staff at TAJ to make suitable arrangements, if they are faced with difficulties in paying their property tax payments.