Authority to reissue land tax bills to affected agricultural landowners

Some agricultural landowners who have been complaining about major increases to their land tax bill could soon get some relief, according to Prime Minister Mia Mottley.

She has revealed that the Barbados Revenue Authority (BRA) is working to correct an “error” that resulted in the high bills.

The increases, in some cases as much as 250 per cent, prompted outrage from St Philip North MP Dr Sonia Browne after she received a massive tax assessment in April. She has since encouraged affected landowners across the island to protest the increase.

Prime Minister Mia Mottley addressed the contentious matter as she responded to a taxpayer who raised the issue at the Parish Speaks town hall meeting on Thursday evening at the Princess Margaret Secondary School.

Peter Bradshaw, a resident of Sanford, St Philip, told the PM he and other residents on agricultural plots felt penalised for using their land as intended. Bradshaw reported that they were now being charged new land tax rates in line with commercial property.

Mottley said:  My understanding from the revenue authority is that there were some issues where they literally have had mistakes with the assessments of the houses, whose dwelling houses and rates were changed on agricultural lots. They are currently reviewing that now.”

She also urged patience as the investigation proceeded: “There was a mistake with the categorisation with a number of properties with respect to moving them and that the updated bills will be reissued by the authority to reflect the rates that would have been associated with the previous category.”

The issue has been a source of contention in recent months, with many Sandford residents reaching out to complain about new rate increases for the 2023/2024 and 2024/2025 periods. Some residents saw their bills increase by as much as 250 per cent, with instances of previous bills of $400 or $3 000 jumping to over $4 500 or $8 300 respectively.

It also emerged last Friday that Frere Pilgrim, Christ Church had become the latest hotspot of outrage against a huge hike in land tax bills, one week after Dr Browne stepped her protest amid rising bills in St Philip, including her own.

Obstetrician Dr Raymond Maughan, 72, whose 2.07-acre lot is registered as agricultural land, saw his tax bill triple from $2 425 last year to $7 362.50 this year. He said the site value of his land was $212 700 and the improved value was $775 000.

The prime minister’s assurance follows a letter dated December 2023, obtained by Barbados TODAY that revealed that BRA’s land valuation and assessment technical specialist, Kevindale Carter, responding to a resident’s complaint, explained that owners of properties of two acres or larger were now required to pay 0.95 per cent on the improved value of their land.

Writing on behalf of Revenue Commissioner Louisa Lewis-Ward, Carter said: “The Development Planning Office (DPO), formerly the Town and Country Development Planning Office (TCDPO) determines land use in Barbados. These lots are all classified as agricultural land by the DPO. All lots two acres or more in developments have been determined by the DPO as agricultural land.”

He further explained: “The Barbados Revenue Authority does not classify lands, but values and taxes are based on the DPO classification. When these lots are vacant they are valued and taxed as agricultural lands. That should not change because a house is built on the land. The department erred in changing the category from agricultural to residential for those with houses. This error is now being corrected.”

Carter added that a “50 per cent rebate is available to those that use the land to produce agriculture for sale”.

sheriabrathwaite@barbadostoday.bb