Property Tax Relief Under the UPP

In January 2007, the UPP introduced a new property tax system that assesses the property owner’s tax liability based on market value versus replacement cost.

When the UPP announced that it would totally overhaul the property tax system, the ALP went on a tirade, telling the people of this country that their property tax burden would skyrocket.

As usual, they were completely wrong. What this new property tax system has done is allow the UPP to provide targeted relief to property owners across Antigua and Barbuda.

In particular, under this new system, all owner-occupied residential properties receive a $150,000 residential allowance.

What this means is that homeowners whose property value is assessed at $150,000 or less, will not pay any property tax on their homes.

For a property valued at $300,000, this $150,000 allowance is first deducted then the property tax rate will be applied to the remaining $150,000.

The UPP have also provided relief under the new property tax system to other property owners. Specifically, the UPP has granted:

• 90 percent tax relief on productive agricultural land;
• 25 percent tax relief for taxable property adopted for use in the hotel industry;
• 25 percent tax relief on property used by manufacturing enterprises;
• 50 percent tax relief on property maintained as a historical site;
• 50 percent tax relief for property maintained for cultural purposes and/or recreation; and
• 50 percent tax relief for property reserved for special public interests, including institutional property.