Changes To Senior’s Car/Land Tax
Seniors with the largest class of car and with homes valued at over $1 million will now have to pay tax on them, Premier and Minister of Finance Paula Cox said in her Budget speech this morning [Feb.24].
The Premier said, “The yield from land tax will be improved in 2012–2013 by adjusting the ARV threshold that provides an exemption for seniors living in their own homes. The amount of recovered tax is estimated at $4 million.
“The effect of the adjustment is that seniors whose properties have an ARV of less than $50,000 (an estimated market value of up to about $1 million) will continue to have full exemption from land tax.
“Seniors with properties with ARVs above $50,000 will now pay the assessed tax on the portion above the $50,000 threshold.
“The exemption previously provided to seniors for vehicle licences has been preserved for vehicles in classes A, B, C and D. The present regime that provides an exemption for all classes of vehicles registered in the names of seniors has been abused with the tax loss amounting to nearly $4 million per annum.
“In 2007, Government put into place a policy whereby seniors who owned a vehicle did not have to pay to license their vehicle. Since the exemption came into force there has been a 26 per cent increase in vehicles licensed to seniors.
“Further, the largest class of vehicle — class H — that attracts an annual licence fee of $1,551 has seen an increase of 358 per cent in registrations to seniors.”
“The rollback to cut out the abuse will recover an estimated $3 million in vehicle licence fees.” said Premier Cox.
View all our coverage of the 2012/13 Budget here.
“Further, the largest class of vehicle — class H — that attracts an annual licence fee of $1,551 has seen an increase of 358 per cent in registrations to seniors.”
a few bad apples….
Well Done Premier….these two changes are sensible.
THE THEVES HAVE BEEN COUGHT. WELL DONE PREMIER..
what is louis jackson going to say about senior abuse here.Or is her grandson got a big h class car in her name.
Maddog – you need to be muzzled. Louise Jackson has done her very best for our Seniors ….. what the hell have you done other than make idiotic statements like this one? Go back to your dog house.
Louise Jackson 30yrs ago wouldn’t even look At a senior citizen while her old party was in power….couldnt even sit on the steps outside her dance school for a minute….TELL Me I dont know what I’m talking about….
You will soon see these beheamoths up for sale!!! Gotcha!
Well done Minister of Finance
These 2 changes are entirely sensible and you have indicated the amount of loss revenues that resulted from the abuse.
I trust that there will not be any ridiculous comments about these 2 changes.
Truth (Original), it doesn’t look like just a few bad apples.
Here is some information fro people to grasp what is being done.
Most seniors have older homes which have a higher market value so will nwo be paying Land Tax whilst they are on thier pension.
Some of the cars that are considered H include BMW 1 Series 5-door hatchback; BMW 1 Series 2-door Sports Coupe convertible; Fiat Bravo; Hyundai Coupe; Hyundai Tucson 2 – litre; Jeep Cherokee; Jeep Patriot; Kia Cerato; Kia Sportage; Mazda 3; Nissan Qashqai; Nissan Tiida Sedan; Peugeot Partner Tepee; Subaru Impreza; Toyota Yaris Sedan; Volkswagen Eos Cabriolet, these are some of the same vehicles that someon will spend some of their retired savings to buy to drive in “style”
With the expected increase to Future Care we will soon alienate our seniors. Tehy will now be forced to sell thier property/houses and move into senior care, which isnt free.
We have put up a sign saying “Retire in Bermuda and pay more with less, but dont worry your loving children will only fight over your stuff and ship you into a home.”
With all due respect PH, I don’t think you’re going to find too many seniors driving those type of cars, and we do know that this has been abused so I’m glad to see the change. I wouldn’t vote for this government in a million years, but I must admit that the PLP government has done more for seniors than the UBP government ever did. Okay, okay, Future Care has been a fiasco, but other than that …….
What have they done? Everything they do they ultimately reverse.
As usual, another not thought out kneejerk action by this govenment punishes those who comply with the law rather than stopping the ones who abuse it. Reminds me of the window tint law that was on the books for years but no one bothered to enforce it. You can’t tell me that they can’t think of a way to figure out who is registering these large cars to granny when they are inspected yearly ? I had to take my drivers test at 65 in my own car, is granny taking her test in the H class car ? I have a 14 year old G class vehicle that has been registered to me for all those 14 years, I just turned 65 and am being penalized along with others I’m sure because government can’t figure out a way or go to the trouble to find out who is abusing the law ! It’s just like taking your dog to the beach in the summer, the few inconsiderate people who haven’t taken the time to learn how to control their dogs ruin for the concientious dog owners. Typical, the few jerks ruin it for everyone so just go and penalize everyone !
The class H in not the only one affected by this!
It would make sense to apply this law to NEW vehicles purchased AFTER the law is passed.
Ha, so now if the kiddies want a second car & put it in grannys name & address, they will have to settle for a small car. The result is the same. 2 car households.
Also, does granny get free registration up to the class D & pay the difference or does she have to pay the whole fee for the class?
A good move but can’t give too much credit – once again a PLP policy being undone because of lack of thought and no foresight. The flipPLoP party have reversed more of their own policies than anything else. Need I say it again? Flipflop party!!! FlipPLoP….