NASSAU, BAHAMAS — A group of condo owners are contesting real property tax charges that nearly doubled the rate on their homes compared to last year.
The sharp increase reportedly followed a recent Ministry of Finance assessment, which valued the properties at almost twice as much as their assessed value prepared by certified independent appraisers.
In a letter addressed to the Chief Valuation Officer at the Ministry of Finance, dated March 8, 2022, a homeowner of an apartment complex on Paradise Island wrote on behalf of the eight homeowners, advising that individual owners received real property tax bills for 2022 indicating an “inflated assessed value of over $1 million”, representing a 179 percent increase over the 2021 valuation.
…In my respectful view it appears to be a direct attack on middle-class citizens of this county to eliminate that class — BAHAMIAN HOMEOWNER
For the particular condo unit, the Department of Inland Revenue valued the property in 2021 at just over $388,000.
It assessed the same home’s value in 2022 at just shy of $1.1 million — a $700,000 difference.
In support of the real property tax inquiry form, objecting to the massive increase, the homeowner attached an independent appraisal and inspection report, dated March 1, 2022, and performed by a certified appraiser and consultant architect, recommended by all Banks and Mortgages Co.
A homeowner of the Paradise Island complex, who spoke on condition of anonymity, said she was shocked that the government had more than doubled the value of her property in its assessment, and said the move represents a “direct attack on middle class Bahamians”.
According to the homeowner, the most recent evaluation of one of the homes in the complex by a reputable company was around $500,000.
“Therefore, in my respectful view it appears to be a direct attack on middle-class citizens of this county to eliminate that class,” the homeowner said.
“When I spoke to a government official at the Inland Revenue on Friday, I was advised that when the government makes an assessment of a property, it is very unlikely that they will reduce that figure even when presented lower appraisals by reputable Appraisers.”
The homeowner added that many owners on Paradise Island are also objecting to the increase in valuations of their properties.
A well-placed source in the former administration said while increases in real property tax can be based on a number of variables, including correcting an undervaluation, any increase above 10 percent in a single year “is just unfair to the taxpayer”.
Calls placed to key Ministry of Finance officials were not returned.
“What is our government trying to do to Bahamians?” another homeowner said.
“Instead of entertaining foreigners at the taxpayers’ expense, our government should put Bahamians first and not waste money and then try to increase our taxes.
“I am a Bahamian trying to live a simple life and would like to enjoy my latter years and not be financially burdened and oppressed by any government of the day at whim.”
