You are on page 1of 3

Fast Facts on Property Tax

Valuing your
Residential or commercial property

1 Q. Who is responsible for valuing my property?


A. The qualified professionals at the Valuation Division of the Ministry of Finance.

2 Q. Is property tax a new tax?


A. No. Property tax, has been with us since the 19th century. Today the tax is
more popularly known as land and building tax.

3 Q. How is the value of my property tax calculated?


A. Valuers take several factors into account in calculating the unit value of the
property (pm²- price per square metre) which is used to calculate your property’s
rental value. They include:
1. the type or category of the property- executive, modern, standard. This
depends on features of the property: – design; variety, quality and use of
room space; type and quality of utilities, finishes, etc.
2. the location of the property- for example: Goodwood Gardens,
Diamond Vale, Averbough and Hibiscus Ave may be grouped together
as having rent for executive property at $80 pm², modern properties at
$50 pm², standard properties at $35 pm² etc.
Over the last 12-18 months, the Valuation Division of the Ministry of Finance
conducted a property market analysis for Trinidad and Tobago and collected
the information necessary to value each property in the country.

4 Q. Does all property in Trinidad and Tobago have a rental value?


A. Yes. All property in Trinidad and Tobago has a rental value. Every property has
the potential of being rented - whether the intention of the owner is to rent it or
not. The rental value is determined by what rent the property would fetch on the
open market if it were put up for rent.
6 Q. Will all properties on the same street have the same property taxes to pay?
A. Not necessarily. The rental values of houses, on the same street, may vary
according to classification of the building, floor area of the building, age and
condition of the building, utilities available (water, telephone, electricity etc).
The property tax payable will depend on the rental value of each house.

7 Q. What is the Annual Rental Value?


A. The Annual Rental Value (ARV) is the monthly rental value multiplied by twelve
(12) months.

8 Q. What is the Annual Taxable Value (ATV) for residential and commercial
properties?
A. ATV= 90% x ARV.
 The Annual Taxable Value is 90% of the Annual Rental Value. This 10%
reduction is applied to all cases to cover periods when the property may
not be rented or when the landlord does not collect rent (voids and loss of
rent).
 The ATV is the value used to calculate the property tax.

9 Q. How much tax must I pay?


A. Tax rate x ATV.
Your tax is calculated by multiplying the rate of tax (1, 3, 5 or 6%) that applies to
your property by the Annual Taxable Value (ATV) of your property.

10 Q. How is the annual taxable value (ATV) of my home calculated?


A. For homes (residential properties) the tax rate is 3%.

Example: If your home can be rented for $3000.00 per month,


Your annual rental value will by $3000 x 12= $36,000.
Your ATV will be $36,000 -$3,600 = $32,400.
The property tax will be: $32,400 x 3% = $972.

11 Q. Does every homeowner have to pay property tax, even those in government
housing?
A. Yes, property tax must be paid by every property owner.
 Persons receiving disability grants, public assistance grants and senior
citizen grants may apply to the Board of Inland Revenue to have their
payment of tax (and interest which will accumulate for the time the tax
remains unpaid) deferred until such time as they can pay.
 The tax and interest must be paid before the property is transferred to
another person.

12 Q. Where did the Valuations Division get information on my property?


A. The Valuation Division’s database uses information collected over the last six
(6) years by the Regional Corporations.
 This information was collected through field surveys, property owners’
responses to the Notices under Schedule 6 of the Municipal Corporations
Act No. 21 of 1990 as well as from information supplied by property owners
who came in to the offices of the Regional Corporations over the six year
period.

Rates- old and new

Area Current rate of tax (%)

Residential Commercial Industrial Agricultural


Port of Spain 10 10 10 N/A
San Fernando 8 8 8 N/A
Arima 10 10 6 N/A
Point Fortin 2 2.5 6 2
Chaguanas 10 10 10 10
Rest of Trinidad and Tobago $10 - $20 per acre of land plus 7½% of ATV on the
building
2010 Tax Rates 3 5 6 1