Prime Minister and Minister of Finance Roosevelt Skerrit has introduced of a Property Tax as part of his 2020/21 budget.
Skerrit told Parliament many of the vacant and abandoned properties in Roseau and other urban areas have become eyesores to residents and visitors to the nature island, and pose a health hazard.
“Government wishes to send a signal to owners of these properties that now is the opportune time to put them into productive use, to contribute toward the development of our country. The government has begun initial work on the implementation of a property tax.” He said.
“The intention is to apply the tax to vacant and abandoned properties. In the first phase, the tax would apply to the vacant and abandoned properties in the city and other urban areas. It is expected that this tax will take effect from July 1, 2021. This gives owners ample time to get their properties into productive use. ”
Skerrit also stated that the Government realizes that several persons own land but are not in possession of a certificate of title, as they have difficulty in paying the taxes associated with the transfer.
“There are also several vacant and quite often, prime properties which are in a state of abandonment across Dominica. Many of those have been willed to family members who are unable to divide and register these properties in their names, simply because they do not have the required financial resources.
“We are also aware that several Dominicans, particularly young people, would like to own a piece of Dominica, and any assistance received from the Government would help to make that possible. For a period of one year, that is from September 1, 2020, to August 31, 2021, the fees related to transfer or purchase of land will be as follows: ” Stamp Duty 2 percent ” Judicial Fee 1 percent ” Assurance Fund 1 percent ” Fee to Lawyers A maximum of 1 ½ percent The total of 5 ½ percent on the value of the property will be paid by the buyer instead of the 10 ½ percent which is currently payable,” he said.
According to him, this will result in a 48 percent reduction in fees associated with land transfer for the buyer or receiver. The fee payable by the sellers of these properties will remain at 2 ½ percent.
“We urge our citizens here and abroad to take advantage of the temporary reduction of these rates. Additional staff will be reassigned to the Registry as needed to facilitate quicker processing of these titles. We expect these provisions to provide greater opportunity for property ownership and formalization of that ownership,” he remarked.
The provisions he posited will be particularly helpful to young people, couples, or families looking to own their first home.
According to him, the government has received again this year the recommendation to reduce import duties on building materials and as indicated on numerous occasions, based on Dominica’s experience, this measure does not result in the desired outcome, of an equivalent reduction in the prices of these materials.