OBA’s De Couto On Land Tax Policy
We welcome this policy change however there are several caveats the public should be aware of, Shadow Minister of Finance Dr. Douglas De Couto said as he responded to the Government’s decision about land tax exemptions and surviving senior spouses.
Dr. De Couto said, “Recently, the Government announced that land tax exemptions for surviving spouses of a deceased senior citizen [65+] may be continued for up to two years while probate is completed. The One Bermuda Alliance recognizes that lengthy probate delays are causing financial hardship and unnecessary distress on many Bermudian families, and we welcome this policy change.
“However there are several caveats the public should be aware of.
“First, the land tax exemption can only be continued if the spouse is also 65 years or older. This policy will not help, for example, when a senior citizen passes away without a spouse, leaving their estate with children who are not also seniors. Examples like this were highlighted by questions in Parliament from my fellow OBA MPs on Friday.
“Second, while the land tax exemption for seniors can apply to any property which is their primary residence, it only applies on the amount of ARV up to $45,500 [$1,941 of land tax]. Land tax must be paid for all the ARV above that.
“Thirdly, and perhaps most importantly, this policy change is a band-aid on the underlying problem: unreasonably lengthy probate delays that impact all Bermudian families.
“Unfortunately, Government has not seemed to make any progress on actually reforming probate delays. For example, are the courts supplied with enough staff and proper resources to handle probate applications? Is the Land Valuation Office set up to handle the volume, given that they often assess property valuations in probate applications?
“Like most other announcements from the Government, this is yet another piece of window dressing that pretends to offer meaningful change Bermudians. Meanwhile, the real problems remain unaddressed while Government pats itself on the back.”
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Why would surviving heirs get relief if they are under 65? they aren’t seniors.
the government never intended for this to rid all surviving heirs of undue burden. It was to align with the policy for seniors.
LAND TAX
Very few countries on earth collect land tax , that is if any, other than Bermuda.
The silent majority turn their cheek while many others endure the hard ship which has been going on for many years.
Is this land tax burden all that which breaks the donkeys back?
Is this land tax money for old rope?
Bermuda’ s biggest financial out lay is for real estate, transportation in all its forms and including medical.
Land tax is the easiest tax revenue to collect , A known fact, by virtue that all is required is printing off the bill and mailing for collection.
The talk is affordable housing , just a token that fails to be realized our biggest hurdle to over come is for an affordable Bermuda so how can, this mis named land tax be fair.
Import duty has been paid on the greater portion towards the construction of a building domestic and otherwise .
Land tax assessment is calculated on the annual rentable value of entire property as at during hard times . Can any one of us rent a bank ?
Todays cost of living here is not a slay ride by any means !
Is this land tax is the straw that breaks the donkeys back?
Bermudians do not own row housing or duplications but can own apartment block where the land value is include based on rent evaluation . who has go $5,000. for rent the money is no there, as there are no standards .
Noted is that unimproved land is not assessed for taxation ,tax land it they will soon plant it .
As time passes by, laws become fixed and not amended or revised to concur with modern day requirements making some laws a catch 22 dependant on what laws make the most tax .
National income collected in other countries who survive on income tax but conviently not Bermuda that being glossed over with the exception of pay roll tax for some not all.
There is talk about a fair Bermuda is that an indication of that which was not fair.
The fact remains that Bermudiana can no longer afford to live here including our Real estate to live here with many students finding better opportunities to stay put .
“Very few countries on earth collect land tax , that is if any, other than Bermuda.”
Countries that levy land tax include Australia, Angola, Belgium, Canada, Denmark, Estonia, Mozambique, Nigeria, Rwanda, Singapore, South Africa, Taiwan, and the United States of America
Joe Bloggs
Thanks for the tax information from a multitude of other countries files.
i stand corrected”. satisfied ?
I did say ” if any ”
Do you have your foot or is it through the windows of many other countries business including that of Bermuda ?
Would you not agrees if interested that land tax on top import duty for building materials is unfair !
Take that one step further. T.C.D. variable fees on top of duty on cars a burden, yet you challenge me when you could help to lighten the load with at least some fruit full idea’s .
.
Stop your bickering and be supportive or at least show some encouragement.
Land tax is not exactly a walk in the park or a trip to an exotic destinations.
Many people sacrifice and some have two jobs to help get by.
My second job ended at 2 am Saturday nights on occasions and i am not the only one.
The name of the exercise is tax relief or increase the economy we have to offer something value that is what people need and want ” Bermuda has to give to get ” that is best holiday on the planet Spain does it with no land tax.
When i was younger there were no taxes here.
We priced our selves out of the market and are still ar it .
Educated younger seniors can wrk part time
Where are the insentatives?
PAC MAN,
No one wants to hear my ideas. I am a white male babyboomer.
Land tax and import duty are easy and efficient to collect. Those who consume the most pay the most import duty. Those with the nicest homes pay the most land tax.
What tax do you propose in the alternative?
Before you answer, know this. Bermuda has carried out at least 4 studies into implementing income tax. Every one of those studies has concluded that the cost of monitoring income and collecting income tax would be greater than the amount of tax collected due to Bermuda’s small population.