Imbert: Notices of valuation does not equate property tax

Finance Minister Colm Imbert is once again stressing the value of the notices of valuation being received by homeowners is not the value of the property tax they are expected to pay.

In a release on Saturday, Imbert said, “Although these notices of valuation do not refer to property tax and are not issued by the Board of Inland Revenue, it is being erroneously promoted by mischief makers that the annual rental value is equal to the property tax that owners will have to pay.

“For the record, the Property Tax Act makes it clear property tax is only three per cent of the annual rental value for residential properties, after first deducting ten per cent from the annual rental value. It is not the same amount as the rental value.”

He said the Board of Inland Revenue will issue Notices of Property Tax soon and it will use the formula property tax = annual rental value x 90 per cent (0.9) x 3 per cent (0.03).

He gave the example of a residential property with annual rental value of $36,000. Using the above formula, the annual property tax would be $972 or $81 per month.

In his 2024 budget statement in October, Imbert said property tax for residential customers will be introduced in 2024 and is expected to raise about $400 million annually.