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EraPhilippine MP Dr Sonya Brown is spearheading a protest movement against a significant increase in land tax rates affecting property owners with two acres or more.
The Barbados Revenue Authority (BRA) has rezoned a large number of properties from residential to agricultural use, resulting in some landowners seeing their tax bills increase by up to 250%. A government backbencher herself has been affected by the change and she has called on citizens to join the protest.
“I think this is worth fighting, and I intend to keep fighting until we find a solution, hopefully in our favor. I can’t take it anymore,” Dr. Brown told Barbados TodayShe added: “I would like to invite anyone in Sanford, St Philip and elsewhere on the island to contact me. I hope we can unite and demand change. In my opinion, this is the only way we can affect change, we need to unite and oppose together.”
The dispute stems from the BRA’s decision to correct what it called a previous classification error. Kevindale Carter, BRA land valuation and assessment technical specialist, explained in a letter to residents that land of two acres or more will now be taxed at 0.95 percent based on the value of its land improvements, in line with the agricultural rate.
Carter wrote: “The Development Planning Office (DPO), formerly the Town and Country Development Planning Office (TCDPO), is responsible for determining the use of land in Barbados. These plots of land are classified as agricultural by the DPO. All plots of land in development projects that are 2 acres or more in size are determined by the DPO to be agricultural land. The Barbados Revenue Authority does not classify land, but values and taxes are based on the DPO’s classification.
“When these plots were vacant, they were treated as agricultural land and taxed as such. This should not change because there were houses built on the land. The department mistakenly changed the category of land with houses on it from agricultural to residential. This mistake is now being corrected,” Carter said, adding that “those who use the land to produce agricultural produce and sell it are eligible for a 50 per cent tax rebate”.
The reclassification resulted in significantly higher tax bills, with some residents who previously paid just over $400 or $3,000 now facing bills of more than $4,500 or more than $8,300, respectively.
Dr Brown, who raised the issue in parliament in March, said she was asked to apply to the BRA but “got almost nothing in return”. She eventually sought an agricultural rebate but still received an $8,300 bill which she “hated to pay”.
Dr Brown’s neighbour Peter Bradshaw saw his land tax bill soar from $427 to $4,512. He reported that objections from residents were unsuccessful, leading them to contact the Ombudsman’s office. Bradshaw expressed concern about the increasing charges for non-payment, with his bill now at more than $9,000.
The problem appears to be affecting homeowners in mainly rural areas of the island, including Blowers, St James, Friel Pilgrim, Christ Church and Friendship, St Lucy. Barbados Today However, some residents are reluctant to publicly oppose the movement, fearing persecution.
Critics of the policy change argue that it is inconsistent with Land Tax ActSection 6A states: “Where a person owns land on which a dwelling house is built and such dwelling house is used solely as a dwelling house, such person shall be liable to tax at the rate prescribed under section 6(1).”
In March, BRA communications and public relations manager Carolyn Williams-Gayle issued a statement saying the agency is “in the process of updating its tax rates based on the property’s stated use.” She added that landowners who want to change their land use classification need to apply to the Department of Planning and Development.
The statement reads in part: “Regarding land use, Land Tax Act Refers to property owners who own agricultural land and may build a residence on that land. When referring to the agricultural tax rebate, Land Tax Act CAP78A (8A)(3) provides that land that is being cultivated is not considered not to be used exclusively for agricultural purposes merely because a dwelling or other structure is erected on it.
“It is the responsibility of the Barbados Revenue Authority to value and tax land according to the prescribed land use. Once the land use has been determined, we are always working to align the property tax rates with the prescribed use. This is an ongoing process. Any application for a change in land use must be made to the Department of Planning and Development.”
As the controversy continues, Dr Brown and her fellow protesters have vowed to “fight to the end” and believe collective action will force her government to address the issue.
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