Real Property Taxes Rates
June 2011
Land is currently assessed for the payment of
real property tax at the rates set forth below per annum:
|
OWNER-OCCUPIED |
COMMERICAL |
VACANT |
CROWN |
||||
|
First $250,0000 |
Exempt |
First |
1% |
First |
$100.00 |
Market value of improvements under $10 Million |
0.5% |
|
Homes belonging to first time homeowners with market value above $250,000 but under $500,000 |
Exempt for 5 years from date of occupancy or conveyance1 |
Balance |
2% |
Balance |
1.5% |
Market value of improvements above $10 Million |
0.25% |
|
Homes with market value above $250,000 but under $500,000 |
0.75%2 |
|
|
|
|
|
|
|
Homes with market value above $500,000 but under $5,000,000 |
1%3 |
|
|
|
|
|
|
|
Homes with market value above $5,000,000 |
0.25% upon that part of the market value which exceeds $5,000,0004 |
|
|
|
|
|
|
1 Section 3(d) of Real
Property Tax (Amendment) Act, 2009
2 Section 5 of Real Property Tax (Amendment) Act,
2008
3 Section 3(2) of Real Property Tax (Amendment) Act,
2002
4 Section 3(a)(iii) of Real Property Tax (Amendment)
Act, 2009
Owner-Occupied Property
The Real Property Tax (Amendment) Act, 2008, was implemented on
1st July 2008. It introduced an exemption for first time
homeowners for a period of 5 years for owner-occupied
property with a market value above $250,000 but under
$500,000.
Previously, an owner had to occupy his home for an aggregate of 9
months per annum to qualify for the owner-occupied exemption.
However, this requirement was removed by the Real Property Tax
(Amendment) Act, 2009, which was implemented on 13th July 2009.
Owner-occupied property is now defined as property occupied by the
owner in fee simple or the mortgagor in possession who occupies and
resides in the property exclusively on a permanent or seasonal
basis. There is no longer a restriction on the amount of time that
the owner must occupy the home on an annual basis but the property
should not be leased or rented to a third party for more than 9
months during the calendar year.5
For owner-occupied property exceeding $5,000,000 in value, the 2009 amendment also reduced the tax from ¾% to ¼% per annum upon that part of the market value of the property which exceeds $5,000,000.
Vacant (Undeveloped) Land
The 2009 amendment introduced an entirely new rate of assessment
for vacant land. Upon that part of the market value which does not
exceed $7,000, the tax is $100.00 and, upon that part which exceeds
$7,000, the tax is 1½%.
Undeveloped land owned by Bahamians is exempt. Property in the
Family Islands owned by Bahamians is also exempt.
The remedy of the power of sale is now available to the Treasurer
in relation to unimproved property in arrears where such arrears
are unpaid for more than 6 months after the expiration of 30 days
from becoming due.
Crown Leased Cay
As a result of the 2009 amendment, this is an entirely new
category of property now being assessed. The tax
is ½% per annum of the market value of the improvements under $10
million and ¼% per annum of the market value of the improvements
above $10 million.
Surcharges on Arrears
The 2009 amendment introduced a new rate of surcharge on arrears
of 5% per annum until payment.
5 Section 3(d) of Real Property Tax (Amendment) Act, 2009
