NASSAU, BAHAMAS- The Department of Inland Revenue is preparing to sell a number of delinquent real property tax liens to third-party collectors in an effort to recover outstanding debts on properties with significant arrears.
This initiative targets mostly non-owner-occupied properties and aims to improve tax compliance and revenue collection. Speaking at a press conference hosted by the Office of the Prime Minister, Acting Controller of Inland Revenue Shunda Strachan provided updates on the department’s ongoing efforts to address unpaid real property taxes.
“We’ve had six publications. We’ve had, I think, something like more than 20 sales that are either in process or completed sales,” Strachan said, referring to the department’s power of sale auctions. She emphasised that the process is “not a fast process because at the end of the day, there’s no desire to sell a Bahamian’s property and that’s really the very last resort.
Regarding the sale of delinquent liens, Strachan explained: “We’re getting ready to release a lien bucket, which is really selling the debt to a third party. So what that means is we have a lot of delinquent properties, meaning properties that have significant arrears.”
She clarified that these enforcement actions focus on properties that are not owner-occupied by Bahamians. “We can go to power of sale for any property that is not Bahamian owner-occupied,” Strachan said.
Despite the challenges, Strachan praised local property owners’ increasing commitment to paying real property tax. “It’s still high, it’s still high, but it’s been going down. I’m proud of my Bahamian people because they are taking real property tax really seriously now. We’re seeing the shift and I can only commend the people because I know it’s a difficult thing if you hadn’t been paying it all along to commit to paying it.”
Legislative changes passed in 2022 expanded the Department of Inland Revenue’s authority to sell not only vacant land owned by foreigners but also structures and improved properties with unpaid taxes. This enhanced enforcement power is key to addressing tax delinquency and improving government revenue.
