Withdraw The Dangerous Property Tax Bill
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EFFECTS OF PROPERTY TAX
A one bedroom apartment is between $2,000 - $3,000 rent. So an entire 3 bedroom house would be between $5,000 and $7,000 depends on location \
Home can rent for: $5,000.00 per month
So, ‘Annual’ Rental Value = $60,000 ($5,000 x 12)
Annual Taxable Value (ATV) = 60,000 – 10% (for ‘voids’) ($6,000)= $54,000
ANNUAL PROPERTY TAX = $54,000 x 3% = $1620 per year, or
$135.00 PER MONTH
For a Pensioner living on $3,500.00 per month, that’s almost a 4% cut in their pension.
For a Disabled person living on $1,800.00 per month, that’s 7.5% cut in their disability grant.
For a CEPEP Worker earning $1,580.00 per month, that’s an 8.5% cut to their salary.
For a person earning $4,000.00 per month and renting a One bedroom apartment for $2,000.00 per month they are left with $2,000.00 to live on for the rest of the month to pay Phone, Electricity and Water bills plus food and traveling.
And if we do a basic calculation:
Traveling: $125 per week, $125 x four week = $500
TOTAL = $2,120.00 -$120.00
So be it $81.00, $100.00 or $135.00 per month, some people just can’t afford it.
And I haven’t calculated the 5% commercial and 6% industrial tax ripple effect on consumers.
PROPERTY TAX: IF YOU ARE RENTING A SPACE IN A MALL
Space in Mall can rent for: $20,000.00 per month
So, ‘Annual’ Rental Value = $240,000 ($20,000 x 12)
Annual Taxable Value (ATV) = 240,000 – 10% (for ‘voids’) ($24,000)
ANNUAL PROPERTY TAX = $216,000 x 5% = $10,800 per year, or
$900 PER MONTH
PROPERTY TAX ON AN EMPTY WAREHOUSE
If you have an unoccupied Warehouse 40x80 in size 3200sqf
At a rental value of $3.50 per sqf (3.50x3200 = $11,200)
Warehouse can rent for: $11,200.00 per month
So, ‘Annual’ Rental Value = $134,400 ($11,200 x 12)
Annual Taxable Value (ATV) = 134,400 – 10% (for ‘voids’) ($13,440)
ANNUAL PROPERTY TAX = $120,960 x 5% = $6,048 per year, or
$504.00 PER MONTH
Given how slow business is now, someone with an EMPTY Warehouse will face a $504 monthly penalty.
PROPERTY TAX - ANNUAL RENTAL VALUE – VACANT LAND
The Annual Rental Value of vacant land will be found by taking a percentage of the Current Market Value of the land.
Commercial and Industrial 5%
For example if you have a Commercial or Industrial piece of land worth $5 Million dollars you subtract 5% (5,000,000 – 5% = $250,000) and then subtract 5% from $250,000 ($250,000 – 5% = $12,500)
ANNUAL PROPERTY TAX = $5,000,000 -5% = $250,000 -5% -$12,500 per year, or $1041.00 PER MONTH
LOGIC IN PROPERTY TAX
It is obvious the Property Tax will be passed on to the “consumer”
The government itself being a consumer, how much more it is going to cost the government for goods and services when Property Tax is applied? I am sure it is going to be more than they are hoping to collect from Property Tax.
For example: Contractors would be taxed at 6% industrial rate, they would pass that rate on back to the government. PLUS the additional cost from their supplies . so a contract like the Manzanilla highway could easily go from $400 Million to $450 Million because of Property Tax, so the $500 Million the government planning to collect from Property Tax could be easily wipeout.
Given FUEL INCREASED 4 TIMES, DIESEL BY 125% FROM $1.50 per liter in 2015 to $3.41 in 2018. Zero rated goods now carries 12.5% VAT. Plus 7% online Tax and 30% Tax on used Tyres plus $20 disposal fee. The population is overburdened with taxes and given the potential that the government wouldn’t receive the $500 million they projected to collect from Property Tax and the imminent hardship it is going to bring to the citizens of Trinidad & Tobago, we call on the Finance Minister Mr Colm Imbert and by extension the government to withdraw the Property Tax Bill.
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