Fee Increases: Court Fees, Top Land Tax & More
The Government “will not be implementing an across the board increase in fees that would impact all government services” Premier David Burt said, adding that there will, however “be adjustments to fees to support the Government’s necessary infrastructure investment” and the some fees will increase by 5% including, but not limited to, stamp duty, trademark fees, solid waste dumping fees, planning fees and more.
In delivering the 2023/24 Budget today, the Premier — who is also the Minister of Finance — said, ”2018 was the last time that the PLP Government implemented the biennial fee review, which saw all Government fees and charges increase by 5%. I am pleased to report that we will not be implementing an across the board increase in fees that would impact all government services, such as vehicle licensing, passport renewals, annual business licences, customs charges, and rental of Government facilities.
“There will, however, be adjustments to fees to support the Government’s necessary infrastructure investment, and the following fees will increase by 5%.
- Stamp duty
- Trademark fees
- Fines
- Solid waste dumping fees
- Immigration fees [with the exception of passport fees]
- Planning fees
- Seaborne shipping fees [tugboats, etc.]
“These increases in fees are estimated to yield an additional $3.3 million for the Government.
Increase in the Top Two Bands of Land Tax
“During consultation with various groups, it was pointed out that Bermuda’s land taxes for high-value properties are comparatively low when compared to other jurisdictions. To provide additional revenue to the treasury while not increasing the burden on the vast majority of homeowners, the Government will increase the top two bands of land tax by 5% each.
“This increase will only affect 4% of the top properties and is expected to yield an additional $2.4 million.
Regulatory Fee for Corporate Compliance
“During the new fiscal year, the Registrar of Companies will introduce a new corporate regulatory fee. The fee, which is planned to be $150.00 annually for local companies and $500.00 annually for other entities, is expected to generate approximately $6 million.
“Historically, the primary responsibilities of the Registrar of Companies have been to effectively administer the registration and regulation of all corporate entities in Bermuda and ensure the provision of current and accurate registry information. As the Registrar of Companies has assumed regulatory responsibility for overseeing adherence of companies to changing global regulatory requirements, it is necessary to ensure that these compliance costs are appropriately funded by the entities that they will now be regulating. Consultation with industry has been ongoing over the last two years, and the new regime will be effective January 2024.
Vacation Rental Registration Fees
“Vacation rentals are part of our tourism matrix. However, it must be noted that the initial vacation rental programme was introduced in 2018, when Bermuda’s economy was still recovering and there were no limits placed on properties that were subject to rent control being converted to vacation rentals. In the many jurisdictions globally where vacation rentals have reduced the amount of affordable housing, governments must act to ensure that vacation rentals do not exacerbate housing shortages. Though the Government is not proposing a limit on vacation rentals at this time, there will be a fee introduced to register properties as vacation rentals, which will be based on the ARV of the property.
“This new fee is expected to generate $500,000 in additional revenue.
PATI Fees
“The Public Access to Information Regime [PATI] is a proud achievement of the PLP Government and serves as a way to ensure that the public has access to the information that the Government keeps on them and is better able to understand the reasoning for government actions. PATI increases the Government’s transparency and accountability.
“Despite this, the regime can be cumbersome and expensive. As an example, Mr Speaker, a government authority spent in excess of $300,000 to respond to a single PATI request. These are funds that could have been used to advance the wellbeing of Bermuda but were instead spent researching information. High levels of expenditure on requests are not uncommon, as many government departments have had to halt vital work or hire shortterm consultants to assist in responding to PATI requests.
“Therefore, the Government will implement a nominal fee for PATI requests that are not from private individuals requesting information about the data that the Government holds about them. This nominal fee will not nearly cover the extraordinary amount that researching PATI requests costs the Government, but the Cabinet has deemed it necessary to implement a fee to ensure that at least some of the costs of requests are recouped.
Increase In Court Fees
“An assessment has been completed comparing Bermuda court fees to those in other jurisdictions and Bermuda’s fees were found to be considerably lower than competitor jurisdictions. As Bermuda’s international business sector has developed and grown, the number and complexity of court matters have increased significantly. A new scale of fees, which will impact matters being conducted in the Magistrates Court, Supreme Court and the Court of Appeal has been developed. It is anticipated that these changes will yield an additional $750,000.”
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“Despite this, the regime can be cumbersome and expensive. As an example, Mr Speaker, a government authority spent in excess of $300,000 to respond to a single PATI request. These are funds that could have been used to advance the wellbeing of Bermuda but were instead spent researching information. High levels of expenditure on requests are not uncommon, as many government departments have had to halt vital work or hire shortterm consultants to assist in responding to PATI requests.”
But it was the PLP Government that passed the PATI Act and told us that it would make the PLP Government more transparent