Property Tax - TAJ Portal (2024)

Property Tax

Property tax is a charge levied on both residential and commercial properties in Jamaica that are listed on the Valuation Roll.

Property Tax is payable by all persons in possession of land; such a person is defined by the Property Tax Act as the owner, occupier, mortgagee in possession or other person in actual possession of such property. It generates revenue to fund the public & community amenities provided by the local government. It is charged on the unimproved value of the land.

Understanding unimproved value

1. In relation to unimproved land the capital sum which the land might be expected to realize if offered for sale on such reasonable terms and conditions as a bona fide seller would require;
2. In relation to improved land the capital sum which the land might be expected to realize if offered for sale on such reasonable terms and conditions as a bona fide seller would require, assuming that at the time the value is to be determined the improvements do not exist.

Payment date for Property Tax

Property Tax is due and payable on the 1st of April in each year. Payments can be made annually, biannually or quarterly as follows:

Persons may however opt to make their payments on a monthly basis.

NB.Any 1^stpayment madeafterthe 30th of April are considered late. Such payments may attract a ten percent (10%) penalty. Amounts unpaidafterthirty (30) days from the 30th of April may attract a further fifteen percent (15%) interest per annum.

Properties Exempt from Property Tax

1. All buildings held in trust exclusively for public religious worship or for religious worship and for use as classrooms, together with the lands immediately attached to them and used as churchyards or burial grounds;
2. All buildings and lands belonging to and used by a registered charitable organisation, and not falling within the description of any other paragraph in this list;
3. All buildings and lands belonging to and used by the University of the West Indies and the Council of Legal Education.
4. All buildings and lands belonging to Primary Schools, Agricultural, Industrial or Vocational Schools approved by the Minister Responsible for Education.
5. All buildings and lands belonging to Secondary Schools receiving any payment out of the Consolidated Fund;
6. All buildings and lands, belonging to Secondary Schools, Commercial Schools or Preparatory Schools with not less than twelve scholars in average attendance and certified by the Minister responsible for Education to be efficient;
7. All property belonging to the Crown, the Government of Jamaica or any Parish Council, or the Kingston and St. Andrew Corporation;
8. All freehold property vested in the Commissioner of Lands and in the occupation of the Crown, the Government of Jamaica, a Parish Council, the Kingston and St. Andrew Corporation or the holder of a public office by virtue of his employment;
9. All buildings belonging to any church used as rectories, caretaker cottages or church halls, together with the lands immediately attached and belonging to them, so long as the area of land so exempt does not exceed one (1) acre;
10. All buildings and lands belonging to and used solely for the purposes of any private hospital approved by the Minister;
11. All buildings and lands belonging to any social, cultural organization approved by the Minister and used solely for the purposes of such organization.

Calculating Property Tax

Property Tax Rate Schedule (as at April 1, 2017)

Rates

All parishes:

On property the unimproved value of

which is $400,000.00 or less ... ... $1,000.00

On property the unimproved value of which exceeds $400,000.00 but does not exceed $800,000.00:

(a) for the first $400,000.00 ... ... $1,000.00

(b) for every dollar thereafter ... ... 0.50%

On property the unimproved value of which exceeds $800,000.00 but does not exceed $1,500,000.00:

(a) for the first $400,000.00 ... ... $1,000.00

(b) for the next $400,000.00 ... ... 0.50%

(c) for every dollar thereafter ... ... 0.55%

On property the unimproved value of which exceeds $1,500,000.00 but does not exceed $3,000,000.00:

(a) for the first $400,000.00 ... ... $1,000.00

(b) for the next $400,000.00 ... ... 0.50%

(c) for the next $700,000.00 ... ... 0.55%

(d) for every dollar thereafter ... ... 0.60%

On property the unimproved value of which exceeds $3,000,000.00 but does not exceed $4,500,000.00:

(a) for the first $400,000.00 ... ... $1,000.00

(b) for the next $400,000.00 ... ... 0.50%

(c) for the next $700,000.00 ... ... 0.55%

(d) for the next $1,500,000.00 ... ... 0.60%

(e) for every dollar thereafter ... ... 0.65%

On property the unimproved value of which exceeds $4,500,000.00 but does not exceed $7,000,000.00:

(a) for the first $400,000.00 ... ... $1,000.00

(b) for the next $400,000.00 ... ... 0.50%

(c) for the next $700,000.00 ... ... 0.55%

(d) for the next $1,500,000.00 ... ... 0.60%

(e) for the next $1,500,000.00 ... ... 0.65%

(f) for every dollar thereafter ... ... 0.70%

On property the unimproved value of which exceeds $7,000,000.00 but does not exceed 12,000,000.00:

(a) for the first $400,000.00 ... ... $1,000.00

(b) for the next $400,000.00 ... ... 0.50%

(c) for the next $700,000.00 ... ... 0.55%

(d) for the next $1,500,000.00 ... ... 0.60%

(e) for the next $1,500,000.00 ... ... 0.65%

(f) for the next $2,500,000.00 ... ... 0.70%

(g) for every dollar thereafter ... ... 0.75%

On property the unimproved value of which exceeds $12,000,000.00 but does not exceed $30,000,000.00:

(a) for the first $400,000.00 ... ... $1,000.00

(b) for the next $400,000.00 ... ... 0.50%

(c) for the next $700,000.00 ... ... 0.55%

(d) for the next $1,500,000.00 ... ... 0.60%

(e) for the next $1,500,000.00 ... ... 0.65%

(f) for the next $2,500,000.00 ... ... 0.70%

(g) for the next $5,000,000.00 ... ... 0.75%

(h) for every dollar thereafter ... ... 0.80%

On property the unimproved value of which exceeds $30,000,000.00:

(a) for the first $400,000.00 ... ... $1,000.00

(b) for the next $400,000.00 ... ... 0.50%

(c) for the next $700,000.00 ... ... 0.55%

(d) for the next $1,500,000.00 ... ... 0.60%

(e) for the next $1,500,000.00 ... ... 0.65%

(f) for the next $2,500,000.00 ... ... 0.70%

(g) for the next $5,000,000.00 ... ... 0.75%

(h) for the next $18,000,000.00 ... ... 0.85%

(i) for every dollar thereafter ... ... 0.90%

Persons may use theTAJ Property Tax Online Queryto show current land value and property tax assessment status for seven (7) years.Please make sure to have the valuation number(s) at hand to access information using the property tax online query.

Property Tax Reliefs

The Government has put in place mechanisms by which persons may seek relief from Property Tax where special circ*mstances apply. There are three types of relief, namely Statutory Relief, Agricultural Derating and Special Discretionary Relief.

1. Statutory Relief: This is granted in cases where the valuation, based on the potential use of the land, is higher than the current use. For example; many persons own property and live in an area, which was originally classified as residential, but has now become commercial. In such a case, the valuation will reflect the potential of the highest and best use of the land.
2. Agricultural Derating: This is granted for land used exclusively or primarily for agriculture. The derating certificate may be granted for a maximum period of up to three years. However a new certificate may be granted upon expiration. This application should be sent to the Land Taxation Relief Board.
3. Special Discretionary Relief: This is granted by the Ministry of Finance in cases of hardship. For example; pensioners and other persons with fixed income, widow(er), as well as the aged and persons with disabilities. These applications should be sent to the Parish Review Committee through the local authorities. The Committee will make recommendations to the Ministry of Finance and this relief is applicable for one year only.

The Land Taxation Relief Act

Any person liable to pay land tax may apply to the Board for a relief certificate if:-

• The land was at the time of valuation and is being used as agricultural land and the valuation takes into account the potentialities of the land use other than as agricultural land; or
• A building on the land at the time of valuation was, then and is being used bona fide as a private dwelling house and the valuation of the land takes into account the potentialities of that land as a suitable site for any of the following types of development purposes;-

(i) a hotel or guest house;

(ii) a shop, office or other commercial building;

(iii) an industrial building,

(iv) a block of residential flats, or

(v) a type of residence which would necessitate re-development of the land and involve substantial capital expenditure; or

• The land was at the time of valuation and is being used bona fide for an approved purpose by an approved organization and the valuation thereof takes into account the potentialities of that land as a suitable site for subdivision or for any of the types of development purposes mentioned above.

Payment Options

Paying Online:The most convenient option is to pay online via the Tax Portal. It is recommended that property owners use this alternative as it gives them access, both locally and overseas, to make payments on a 24 hour basis from their homes, offices and elsewhere using a credit card or visa debit card. This means NO MORE WAITING IN LINE.

To log on to the Tax Portal persons need to enter their username and password. Once logged into the system, persons should then select the optionPay Property Taxand follow the instructions to make payment. A reference number will be generated at the end of the transaction, which can be saved or printed for your records. Online users should ensure that they have the valuation number(s) of the property(s) available. This can be seen on a property tax notice, even an old one, a payment reminder or on a previous property tax receipt. The information may also be provided by calling the TAJ’s Customer Care Centre at 888-TAX-HELP.

Paying Inline:Customers may visit any of the 29 tax offices located across the island to make payments using cash, cheque, credit or debit cards. Additionally, the King Street, Cross Roads, Constant Spring and Spanish Town and Tax Offices are equipped with electronic drop boxes which may be used to make payments by cheque. Please note the Valuation number(s) is also necessary when using this option.

Our offices are open from 8:30 am – 4:00 pm Mondays to Wednesdays and from 8:30 am – 3:00 pm Thursday and Fridays. Additionally, the Portmore Tax Office opens on Saturdays between the hours of 9:00am to 2:00pm.

Paying at outstations:During the months of April to June, TAJ normally conducts “out-station” operations, particularly in the rural areas. Details of schedules and venues are available from the local tax offices. However, “out-station” operations only accommodate non-cash transaction; thereforeONLYCredit or Debit cards will be accepted. A receipt will be given for ALL payments made.

Paying via Mobile Tax Unit: The Ministry of Local Government and Community Development, in partnership with Tax Administration Jamaica, commissioned into service two (2) Mobile Tax Units. They are available based on a schedule of parish and location. (NO CASH; only debit and credit cards are accepted)

Frequently Asked Questions about Property Tax

Q1. What is property tax?

A1. Property Tax is a charge levied on property listed on the Valuation Roll in Jamaica.

Q2. Who pays property tax?

A2.All persons in possession of land; such a person is defined by the Property Tax Act as the owner, occupier, mortgagee in possession or other person in actual possession of such property.

Q3. Are any property owners exempt from paying property tax?

A3.Yes. See a detailed list starting on page one (1).

Q4.How is property tax calculated?

A4. The property tax regime has been reformed to expand the number of value bands to nine(9), with reduced tax rates ranging from a flat rate of $1,000 on properties valued at $400,000 or less, up to high of 0.90% on properties valued over $30,000,000. The rates are now applied on a graduating scale allowing property owners to benefit from the rate application to each preceding value band. The ranges are as follows:

for the first $400,000.00 ... ... $1,000.00

for the next $400,000.00 ... ... 0.50%

for the next $700,000.00 ... ... 0.55%

for the next $1,500,000.00 ... ... 0.60%

for the next $1,500,000.00 ... ... 0.65%

for the next $2,500,000.00 ... ... 0.70%

for the next $5,000,000.00 ... ... 0.75%

for the next $18,000,000.00 ... ... 0.80%

for every dollar thereafter ... ... 0.90%

Q5. How is land valued?

A5. Valuation in Jamaica is based on the unimproved value of the land, that is, the price which 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: size of the parcel of land, zoning and type of land, potential for development, topography (elevation & other surface features), soil classification, access to municipal & commercial services, and neighbourhoodcharacteristics.

Q6. Which agency is responsible for land valuation?

A6. The National Land Agency is responsible for valuation of properties on the tax roll. The last exercise was done in 2013.

Q7.What if you disagree with the assessed value of your property?

A7.You may serve a Notice of Objection on the prescribed form at the Commissioner of Land Valuations within 60 days after receiving the Notice of Valuation. You may also complete a Declaration of Value form indicating the amount that they believe is the more accurate value of the land. The landowner should pay 75% of the tax liability while the objection is being considered.

Q8.What actions can the government take to recover unpaid property taxes?

A8. Under the Tax Collection Act the tax collector may take the following actions:

• Issue summons for taxes and penalties owed. If persons failto attend Court, a Warrant of Disobedience may be issued by the Court or an Ex Parte order can be made (i.e. an order for payment made in the person’s absence).
• Where the Court makes an order for payment (Ex Parte or otherwise), in the case of non-payment of the tax the defaulter may be imprisoned for up to three (3) months.
• Levy Warrant or Distrain on Goods/Chattel - seizure of goods and auction of same to recover outstanding property tax
• Levy Warrant or Distrain on Securities, etc. - seizure of money, bonds, securities, etc. and disposal of same to recover outstanding Property Tax.
• Lien on the Property - This blocks the person from transacting any business with the property, such as sale or collateral.
• Forfeiture of Property - The property may be seized and sold to recover property tax owed.
• Collect from persons in possession - payments may be demanded from persons in possession of or occupying the property. e.g. owner, occupier, renter, mortgagee, lessee or other person in actual possession of the property.
• Garnishment – Here the Commissioner General of TAJ issues a Notice of Garnishment (without going to Court) and serves it on a third party who has funds for the taxpayer, instructing that the payments be made to TAJ instead.

Q9. What are the laws that relate to property tax?
A9. The Property Tax Act; Land Taxation (Relief) Act; The Land Valuation Act; The Tax (Collection) Act.

Q10.What is Property Tax intended for?

A10. Property taxes are intended 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 parochial/farm roads.

Q11. Where can you get additional information?

A11. For more information, forms and guidance on Property Tax operations, persons may contact the Tax Administration Jamaica Customer Care Centre at 888-TAX-HELP (888-829-4357) - local; 1-888-GO-JATAX (1-888-465-2829) – USA or visitwww.jamaicatax.gov.jmor emailtaxhelp@taj.gov.jmpr