Property tax relief for pensioners
April was a very busy month for the tax authorities, as many persons took steps to pay their property tax for the 2013-2014 tax year and to also settle arrears for previous years. However with the increase in the property tax rate for the current period, many persons have expressed concern for some of the most vulnerable persons in the society, pensioners and senior citizens. However rest assured that there are provisions available to protect these persons.
The Government has put in place mechanisms by which persons may get relief from Property Tax, where special circumstances apply. A Special Discretionary Relief is available for persons who apply and qualify based on certain conditions. But what exactly is the Special Discretionary relief, who may qualify, how do persons apply and what are the conditions?
Special Discretionary Relief:
This relief may be granted by the Ministry of Finance in cases where pensioners and indigent persons who own lands and may not be able to pay the tax assessed on their properties. Persons may apply in writing, through the local authority or parish council, to the Minister of Finance, who has discretionary powers to remit the tax in whole or part in cases where he considers it just and equitable to do so.
In making an application, certain basic information such as the name of the owner, identity of the person in possession, the address of the property, a contact number and or email address of the applicant, has to be provided. The valuation number of the property, the parish where the property is located, the unimproved value of the land, and the property tax obligation for the current 2013-2014 period is also necessary.
In an effort to get an idea of the status of the owner, the process requires that applicants provide their age, occupation and to indicate if they are a pensioner, elderly person, widow or widower, physically challenged or any other pertinent information. It is also important that the use of the land is stated. That is, whether it is being used for residential, agricultural or commercial purposes. It should be noted that properties that are not residential will be considered only under extremely exceptional circumstances.
To determine the applicant’s ability to pay, certain financial data is also required. Persons will need to provide information and proof of income, such as pension, salary or wages or business.
Conditions that relate to all applicants:
Before applying, persons first need to meet certain conditions to even be considered for the Special Discretionary Relief. Applicants have or be:
I. a valid form of identification. This may be a Passport, Driver’s Licence or National I.D.;
II. the person to whom the premises belong.
III. paid at least 25% or a (1/4) quarter of the current tax obligation;
IV. seeking Discretionary Relief only for the current obligation on the property;
V. no arrears or outstanding obligation on the property for which relief is being sought;
Application forms:
Application forms are available at all parish council offices, tax offices or online on the websites www.jamaicatax.gov.jm or www.localgovjamaica.gov.jm. Completed forms are to be submitted to the local authority or parish council or the tax office in the respective parishes.
Processing of Applications:
To ensure transparency, applications for the Special Discretionary Relief will be processed by a committee, comprising of persons from a member of the Parish Development Committee, civil society, business community, Local Authority or Parish Council and Tax Administration Jamaica. The processing of the application will take about 4 – 6 weeks for investigations and in some instances for an interview with the applicant. Recommendation for any such relief will then be forwarded to the Minister of Finance for consideration.
General Information:
Property owners are reminded that they have an obligation to pay their current property tax or to apply for the Special Discretionary Relief, if they are experiencing financial difficulty and can qualify for it. Persons who missed the April 30 payment due date for current payments, have until May 31 to make the payment before any penalty or interest is applied. Persons in arrears for previous years are also advised that they should enter into a payment arrangement with the tax authorities to settle all outstanding sums.
The Talking Tax series is prepared by the Communications Unit of Tax Administration Jamaica to guide the public on their rights and obligations. To get additional information on this or any other tax matter, persons may contact 1-888-TAX-HELP (829-4357) or www.jamaicatax.gov.jm.