Port auction fizzles but taxman nets millions as owners rush to settle debts

Scores of would-be bidders left Thursday’s highly anticipated property auction empty-handed, after the number of properties on the Barbados Revenue Authority’s (BRA) final sale list dwindled from 29 to just three– following a wave of last minute settlements by property owners. 

Despite the reduction, the auction still brought in some $4.84 million in winning bids– more than four times the $1.1 million in land tax arrears owed on the three remaining lots. 

The BRA’s Communications Officer Erica Lazare told Barbados TODAY that many property owners rushed to pay off outstanding taxes or enter into payment agreements with some doing so right up to the morning of the auction.

“The properties were originally 29 when we issued the Notice of Sale in February. That list was reduced to 15 by last Sunday, and by this morning, just before we started the auction, it was down to three,” Lazare said following the event held at Sky Mall, Haggatt Hall.

“Our mandate is to recover land tax owed on these properties. The intention is not to sell properties unless we absolutely have to. We give every opportunity for owners to come in and either pay in full or work out a payment plan,” she said. 

Lazare shared that the total land tax owed on the three auctioned properties was approximately $1.1 million, but the combined value of winning bids reached over four times that amount.

The three properties successfully auctioned were Lands Down Enterprise, Christ Church – 1.53 acres, sold for $1 million; Lot 27, Lion Castle Polo Estate, St. Thomas – 78 245 sq. ft., sold for $1.09 million and Porters, St. James – 41 570 sq. ft., sold for $2.75 million. 

Describing the public response as ‘high’, Lazare noted that more than 100 people attended the event, but said interest dipped once attendees learned that only three properties remained on the final list.

“Some came for specific properties. Once we announced the revised list, a number of them left, but there was still a large turnout for the remaining three,” she added.

Despite the lower-than-expected number of properties auctioned, BRA considers the outcome a success — not only for the revenue raised but because the process prompted delinquent taxpayers to act.

The Authority had initially targeted more than $23 million in land tax arrears when the first list was published but with over two dozen owners coming forward to settle their debts, BRA admitted that the enforcement effort served its purpose.

While no date has been set for another auction, Lazare noted that BRA held two such sales last year and in 2023 and remains open to doing so again if necessary.

“We can’t say when or if there will be another one this year, but we’ll be sure to notify the public,” she said, adding that in the meantime the agency continues to urge property owners to come forward, settle their taxes, and avoid similar enforcement action. 

shannamoore@barbadostoday.bb