Property Taxation, national and local, are important sources of revenue to Government and Urban Local Authorities (Municipalities) respectively.

The various enactments under which property taxation is payable are:

1. The Registration Duty Act (as amended);
2. The Land (Duties and Taxes) Act 1984;
3. The Finance Act 1997, and
4. The Finance Act 2003
5. Local Government Act 1989
6. Sugar Industry Efficiency Act 1988 (as amended)
7. Finance Act 2008

(a) Under (i) & (ii), the Director, Valuation and Real Estate Consultancy Services, advises the Registrar General on the market value of immoveable property transferred on which tax is levied. The various taxes on property, under the Land Duties and Taxes Act and Registration Duty Act are Registration Duty, Land Transfer Tax, Campement Tax and the tax on transfer of leasehold interests as appropriate.

For that purpose, market value means, according to the Land (Duties and Taxes) Act 1984 “the value which a property might reasonably be expected to realize if sold on the open market value by a prudent vendor”. It is determined by the Valuation Department according to International Standards and is based on the following rules:-

1. There is a willing and prudent seller;
2. There is a willing buyer;
3. That prior to date of sale there had been a reasonable period in which to negotiate the proposed sale taking into account the prevailing market conditions;
4. That property values will remain static throughout the period during which the property is marketed;
5. That the property will be freely and fully exposed to the market;
6. That no account is taken of any additional bid by a prospective purchaser with a special interest;
7. That both parties to the transaction had acted knowledgeably, prudently and without compulsion.

Anybody dissatisfied by our assessment of market value of a property transferred may lodge an appeal to the following institutions:-

(1) Objection Unit as stipulated at Section (3D) of the Finance Act 2008.

Sections 3A, 3C & 3F, 3G of the Finance Act 2008 read as follows:-

Section (3A): Any person who is dissatisfied by a notice under subsection (2)(b), issued on or after 1 October 2008, may, within 28 days of the date of the notice, object to the notice by letter sent to the Registrar-General by registered post.

(3C): Where a person makes an objection under subsection (3A), he shall –

(a) specify in his letter of objection, the grounds of the objection; and

(b) at the same time pay to the Registrar-General 30 percent of the amount of duty or tax excluding penalty, claimed in the notice under subsection (2)(b).

(3F): Where the Registrar-General considers an objection under subsection (3A) or (3B), he shall, by notice in writing –

(a) amend the claim; or

(b) maintain the claim.

(3G): Where a notice is issued under subsection (3F), the person shall pay the duty or tax claimed in the notice within 28 days of the date of the notice.

(b) Under the Local Government Act 1989, the Director, Valuation and Real Estate Consultancy Services is the Valuation Officer and is required to prepare and thereafter maintain a Valuation List for each municipal area, which serve as basis for the levy of rates.

Any party feeling aggrieved by an assessment of the Valuation Officer in respect of a proposal for alteration of Valuation List can make an objection either by writing a letter or filling in an objection form (VO5) in accordance with Section 82 of the Local Government Act 1989. If the party is still dissatisfied with the revised assessment the case would be referred to the Valuation Tribunal in accordance with Section 83 of the Local Government Act 1989, where the latter would have the opportunity to make his case.

Any party still feeling dissatisfied by an award of the Valuation Tribunal, may lodge an appeal to the Supreme Court on a point of law.

The Valuation Department advises the Ministry of Housing and Lands on the quantum of compensation payable to any person dispossessed of his property by way of compulsory acquisition under the Land Acquisition Act 1973.

Any party dissatisfied by an offer of compensation payable by Ministry of Housing and Lands may be referred for hearing before a Board of Assessment, an adhoc tribunal, for determination of the fair amount of compensation.

The Valuation Department tenders advice to all ministries and government departments on rent payable for the lease of a property at each letting and on renewals.

Where Government grants a lease of State Land for any purpose to any party, the Valuation Department tenders appropriate rental advice.

The Valuation Department also advises Ministries and other Government Departments on matters pertaining to the Landlord and Tenant Act 2005 in relation to premises rented by them.

ADVICE IN GENERAL

The Valuation Department also advises Parastatal Bodies such as CEB, CWA, WWA, MRA etc, whenever our services are sought