- 03 MAY 2017
Residential Homeowners Pay 3% Property Tax
The property tax you will be required to pay on your residential property is 3% of its Annual Rental Value. All properties in Trinidad and Tobago have a rental value. The rental value is a calculation of the rent the property will obtain on the open market (if it were put up for rent).
The qualified professionals at the Valuation Division of the Ministry of Finance are responsible for calculating the Annual Rental Value of properties based on the following established criteria:
- Location of the Property (Neighbourhood)
- Classification of the Property (Executive, Modern, Standard [I & II])
- Category of the Property (Agricultural, Commercial, Residential, Industrial)
- Dimensions – Property Floor Area
- Modifications to the particular property
One of the factors mentioned above is Classification of the Property. Here are some more details on the classification structure
- Standard Home One (1) – 1 Bathroom
- Standard Home Two (2) – 1- 2 Bathrooms
- Modern Home – At least One Ensuite Bathroom with a Specialty Room
- Executive Home – May have at least as many Bathrooms as there are Bedrooms and Specialised Areas e.g. a separate room for Dining, Office, Library etc.
N.B. The classification would depend on factors such as quality of construction and condition.
The valuation exercise is an open and transparent process which allows for feedback from the homeowner. The valuation process is as follows:
- The Valuation Return Form (VRF) will be delivered to property owners via post or forms can be collected from any Valuation Division office or downloaded from the Ministry’s website.
- Property Owners/Agents are required to complete the VRF and submit to any office of the Valuation Division.
- The Valuation Division may conduct a physical assessment of the property. (If a physical assessment of the property is required, the Commission of Valuation will give a written notice)
- The Valuation Division will then calculate the Annual Rental Value (ARV).
- The Commissioner of Valuations creates the Valuation Roll.
- The Commissioner of Valuations will serve notice of the valuation to the owner.
- Owner within 30 days after service of the notice of valuation, may post or lodge with the office of the Commissioner of Valuations, an objection in writing against the valuation.