Land Tax Department - Frequently Asked Questions

Frequently Asked Questions

Things you should know...

What is Site and Improved Value ?
The taxes are assessed on one of two components. Site Value is unimproved land or in most cases vacant land. Improved Value signifies land and buildings. Where there is no improved value on the bill, the taxes are calculated on the site value. In those cases where both appear on the bill, the improved value takes precedence.
When is my tax due?
The financial year runs from April 1 to March 31 of the following year and taxes are due and payable for the current year anytime during that period. However, tax bills are usually issued in the last quarter of the calendar year i.e. in the months October to December. If you require a bill for any purpose before the official issue date, you may request one from the Office of the Commissioner of Land Tax in writing.
Are there any concessions granted for prompt payments?
Yes. If the tax bill is paid within thirty days of the issue date of the bill, you are entitled a 10% discount. If the bill is paid after 30 days have expired but before 60 days, you are then entitled to a 5% discount.
What is the latest date on which I should pay my taxes?
The final date for payment of taxes is the 31st of March of the current financial year. If the taxes are not paid by that date, you will incur a penalty of 5% of the unpaid tax plus interest calculated at the rate of 1% per month on the principal and penalty. This interest is calculated on simple interest and is not compounded.
If I am unable to pay the taxes through hardship, are there any avenues open to me?
Yes. Taxpayers who are experiencing difficulty in honouring their obligations may apply to the Tax Relief Board for full or partial exemption from taxes. If they are successful the Board will issue a Tax Relief Certificate.
Under what other conditions are Tax Relief Certificates granted?
The Tax Relief Board may grant a relief certificate for lands which at the time of valuation was used as agricultural land but the valuation takes into account the potentialities of the land for use other than agriculture, land which at the time of valuation was used as dwelling house but the valuation takes into account the potentialities of the land as a suitable site for any of the following types of development purposes;
- hotel or guest house
- Shop, office or other commercial building
- An Industrial building
- A block of residential flats
- A sub-division (Development into smaller lots).
What will the department do to recover unpaid taxes?
The Commissioner may offer for sale by public auction any lands in respect where taxes are due. This option is only employed as a last resort and where the department has exhausted every avenue to ensure that the tax liability is fulfilled.
I recently acquired a property. When will I receive my first tax bill?
This depends on the date that it was conveyed to you. The person in possession of the property at April 1 of that year is responsible for the taxes. Therefore, if it was conveyed to you on or before March 31, you will be receiving a tax bill for the coming financial year.
Are there any concessions granted to taxpayers?
Currently, concessions are given to those pensioners who occupy their homes. Other productive sectors, such as agriculture, and tourism are also given concessions.
How does a Taxpayer qualify for the Pensioner Rebate?
The taxpayer must satisfy all of the following conditions;
1. The individual must be sixty years or over and the Owner of the property, and;
2. the individual must be in receipt of a pension at the 1st of April for the year to which it applies, and ;
3. the individual must be normally resident in Barbados for at least 180 consecutive days in a calendar year.
The Taxpayer is only entitled to this benefit for one residence only. In addition, a Barbados Identification Card or Barbados Passport, and a pension voucher or certificate of eligibility from Pension Plan Administrator must be presented.
If my taxes are incorrectly calculated, can I be refunded?
If, after investigation, it is found that you were taxed at an incorrect rate, an adjusted tax bill will be issued. If you had already paid the bill, the excess amount can either be refunded or put to the following year's bill.
I have not received my tax bill. What should I do?
If you have not received your tax bill within a reasonable time, you should contact the Commissioner of Land Tax, 4th Floor NIS Bldg, Fairchild Street, Bridgetown. Remember that it is your responsibility to ensure that the correct address is shown on your bill.
Are there any properties that are exempted from taxes?
Yes. All lands which are:
- owned and occupied by the Crown.
- owned and occupied by the University of the West Indies
- owned and used by a church exclusively for the purposes of public religious worship
- owned and occupied by a benevolent organization under Section 85 (1) of the Income Tax Act
- used for a public burial ground or crematorium.
What is a revaluation?
A revaluation is an update of all assessments in the island conducted under the direction of the Commissioner of Land Tax and carried out by valuers of this department. The Valuer is a professional assessor whose duties are to discover, list and value all real property on the island in a uniform and equitable manner. These assessments will be based on the concept of market value.
Why is a revaluation necessary?
The Law of Barbados Cap 229A Section 10 requires that all properties in the island be assessed at market value once every three years. A revaluation is the most equitable way to achieve this.
Will all property values change?
Not necessarily. Also not all property values will change at the same rate. Market value will have increased more for some neighbourhoods and property types than for others. Some neighbourhoods and property types may have decreased in values while others may have remained the same. One purpose of a revaluation is to make sure that the assessed values reflect the changes that have occurred in property values.
Who will conduct the revaluation?
The staff of the Commissioner of Land Tax will do the revaluation. They have many years' experience in property assessments and are very familiar with the marketplace of the assigned areas.
You mentioned market value. What is it?
The law requires that your property be assessed at market value. Market value is defined as the amount a typical, well-informed purchaser will be willing to pay for a property. For a sale to be market value (arms length) sale, certain conditions are taken into consideration. 1) The seller must be willing (but not under pressure) to sell and the purchaser willing to buy; 2) the property must be on the market for a reasonable length of time; 3) the payment must be in cash or its equivalent and 4) the financing must be typical for that type of property.
What if there hasn't been a recent arm's length sale of my property?
The term 'arm's length' implies that the parties involved are not, in anyway, related. The next best evidence is the arm's length sales of reasonably comparable properties. These are properties similar to yours in location, age, style, condition and other features that affect market values such as the number and size of bedrooms and bathrooms, etc.
What if there are no reasonably comparable sales?
We will then consider all other factors that may affect the market value of your property. The cost to replace your building(s), less any depreciation, plus the value of the land could also be used to estimate market value. For rental properties, the income and expenses could be considered.
I have recently built my home. Will the actual construction costs be considered?
Your construction cost is an historical figure that may or may not reflect the current market value of your property. It is only one element that will be considered.
What will happen to my assessment if I improve my property?
Generally speaking, improvements that increase the market value of a property will increase the assessment. The following examples are typical items that may increase the assessed value of your property.
- added rooms or garage
- substantial modernization of kitchen or baths
- extensive remodeling
Will my assessment go up if I repair my property?
Normal maintenance will help retain the market value of your property, but generally will not affect your assessment.
How can my assessment change when I haven't done anything to my property?
General economic conditions such as interest rates, inflation rates and changes in the tax laws will influence the value of real estate. As property values change in the marketplace, those changes must be reflected on the assessment roll.
Do all assessments change at the same rate?
No. There are differences between individual properties and between neighbourhoods. In one area, the sales data may indicate a substantial increase in value in a given year. In another neighbourhood, there may be no change, or even a decrease in property values.
Different types of properties within the same neighbourhood may also show different value changes. For example, one-storey houses may be in more demand than two-storey houses or vice versa. Older houses in the same area may be rising in value more slowly than newer ones.
Will I be notified if there is a change in my assessment?
Yes. The Laws of Barbados Cap 229A Section 16 requires that after every revaluation period, all property owners be notified of the current assessment. The notice of valuation shows the name of the owner, the location of the property, the area of the land, and the current site and improved values.
What should I do when I received my notice of valuation?
If all the information is correct and you agree with the assessments, you do nothing.
What if I don't agree with my assessment?
You must lodge an objection in writing within thirty (30) days from the date of the notice. There are four grounds that can act as the basis for an objection.
1. The lands which should be included in one valuation have been valued separately;
2. The land which should be valued separately have been included in one valuation;
3. The values assessed are too high or too low;
4. The person named in the notice is not the owner of the land.
Simply stating that the taxes are too high or low is not grounds for objections.
If I lodge an objection, am I still expected to pay the tax bill when it becomes due?
Yes. Although an objection is lodged, you are still required to pay the taxes. This however, would not apply if you stated that you are not the owner of the land in question. After the decision of the objection has been given and it is in your favour, you will be refunded any excess monies paid.
Is there any recourse to me if I don't agree with the decision of the objection?
Yes. You can appeal further to the Land Valuation Board within thirty days of the service of the notice of decision . Provisions are also in place for you to appeal to the High Court within 21 days of the service of the decision.