KINGSTON, Jamaica — The Tax Administration Jamaica (TAJ) is advising that the change to the property tax rates, recently announced by Finance Minister Audley Shaw is now in effect for fiscal year 2017-18 and that its systems are being adjusted to reflect the reduced rates.

With the adjustments, the flat $1,000 tax on all properties valued up to $400,000 is retained, the TAJ said in a release Tuesday morning, adding that this will benefit 110,303 people.

Above this flat rate, a progressive tax regime with eight bands ranging from a low of 0.5 per cent to a high of 0.9 per cent now applies.

This is a reduction in the tax rates, previously announced in Parliament, which ranged from 0.8 per cent to a high of 1.3 per cent of the land value.

The lowered rates are being applied against the 2013 property valuations and will also apply on a graduating scale allowing property owners to benefit from the rate applicable to each preceding value band, TAJ said.

The value bands and reduced tax rates are now as follows:

Values up to $400,000 is $1000

The next $400,001 to $800,000 is 0.50%

The next $800,001 to $1,500,000 is 0.55%

The next $1,500,001 to $3,000,000 is 0.60%

The next $3,000,001 to $4,500,000 is 0.65%

The next $4,500,001 to $7,000,000 is 0.70%

The next $$7,000,001 to $12,000,000 is 0.75%

The next $12,000,001 to $30,000,000 is 0.80%

Greater than $30,000,001 is 0.90%

With the reduction in the tax rates, 448,360 or 58 per cent of the 776,487 properties will now see a reduction or no change in their property tax bills for 2017-18 over what was assessed for the last fiscal year, the TAJ release said.

Average increases will however still be reflected for 10 per cent  of residential properties; commercial properties,  58 per cent; and agricultural properties, 40 per cent, when the tax rates are applied on the 2013 valuations.

The TAJ further stated that mechanisms are still available through which owners may object to their property valuation or seek relief from the property tax assessed, where special circumstances apply.

Property owners may serve a Notice of Objection to the Commissioner of Land Valuation in respect of their valuation.

Owners may also apply for a special discretionary relief based on hardship; for statutory relief where the potential use of the land differs from its current use; or for agricultural de-rating in respect of agricultural lands. Details of the various relief options are available in a special information hub on the TAJ website at www.jamaicatax.gov.jm

The TAJ however cautioned that the revised property tax assessments for 2017-18 and information pertaining to Strata Corporations, based on the reduced rates, are not yet available on its website or at tax offices.

Information on the property tax online query and the property tax system are currently being updated and will be made available in the shortest possible time, the TAJ said.