Make It Home: Q&A Property Taxes in Jamaica
By KRISTOFFERSON NUNES
Q. What is property tax?
A. Property Tax is a charge levied on all property (Commercial & Residential) in Jamaica.
Q. Who pays property tax?
A. All people in possession of land; the Property Tax Act defines such a person as the owner, occupier, mortgagee in possession or any other person in actual possession of such property.
Q. What does Property Tax pay for?
A. Property taxes are used to finance property-related services in communities throughout Jamaica. Property Tax pays for:
● Maintenance and expansion of street lighting,
● Collection and disposal of solid waste,
● Community infrastructure and civil improvements,
● Administration of Local Authorities,
● Repairs to fire stations, and Rehabilitation of local/farm roads.
Q. Are any property owners exempt from paying Property Tax?
A . The following categories of land are exempt from the payment of Property Tax:
● Buildings exclusively used for religious worship, churchyards, burial grounds and Rectories,
● Educational institutions and properties owned by the Council of Legal Education,
● Government-owned lands,
● Lands owned by the Local Authorities,
● Hospitals, and
● Properties owned by charitable or cultural organisations approved by the Minister and used solely for such organisations.
Q. How is property tax calculated?
A. Properties with an unimproved value of up to J$100,000.00 will be charged a flat rate of J$1,000.00.
Properties with values exceeding J$100,000.00 up to J$1,000,000.00 will attract an additional 1.5% for every additional dollar above J$100,000.00. Properties with values exceeding J$1,000,000.00 will attract an additional 2.0% for every additional dollar.
Q. How is land evaluated?
A. Valuations in Jamaica are based on the unimproved value of the land, that is, the price that the owner would expect to receive if he were selling the land alone, disregarding the value of any improvements such as buildings and crops. Several factors determine the (unimproved) value of land, including the size of the parcel of land, zoning and type of land, the potential for development, topography (elevation & other surface features), soil classification, access to municipal & commercial services, and neighbourhood characteristics.
