Subject: EFFECTS OF PROPERTY TAX Sat Mar 03, 2018 8:13 pm
EFFECTS OF PROPERTY TAX
FUEL INCREASED 6 TIMES
In 2016, the price of super ($2.70) was increased by 15 per cent to $3.11. Diesel went up by the same percentage, climbing from $1.50 to $1.72.
In 2017, the price of diesel alone was touched. It was increased by another 15 per cent from $1.98 to $2.30.
In 2018, super gasoline increased from $3.58 to $3.97 per litre and diesel went up from $2.30 to $3.41 per litre.
In 2019, super climbed from $3.97 per litre to $4.97.
In April 2022, fuel was increased by a dollar across the board. Premium and super went up to $6.75 and $5.97 respectively and diesel went up by 50 cents to $3.91 per litre.
In October 2022, super and premium gasoline went up by $1 per litre, and diesel went up by 50 cents per litre. This means that for a litre, fuel costs $7.75 for premium gas, $6.97 for super gas and $4.41 for diesel.
Zero rated goods now carry 12.5% VAT Plus 7% online Tax 30% Tax on used Tyres plus $20 disposal fee
A one bedroom apartment is between $2,000 - $3,000 rent. So an entire 3 bedroom house would be between $5,000 and $7,000 depends on location \
Houses can rent for: $5,000.00 per month So, ‘Annual’ Rental Value = $60,000 ($5,000 x 12) Annual Taxable Value (ATV) = 60,000 – 10% (for ‘voids’) ($6,000)= $54,000
Therefore, ANNUAL PROPERTY TAX = $54,000 x 3% = $1620 per year, or $135.00 PER MONTH
For a Pensioner living on $3,500.00 per month, that’s almost a 4% cut in their pension. For a Disabled person living on $2,000.00 per month, that’s 6.75% cut in their disability grant.
For a CEPEP Worker earning $1,580.00 per month, that’s an 8.5% cut to their salary.
For a person earning $4,000.00 per month and renting a One bedroom apartment for $2,000.00 per month they are left with $2,000.00 to live on for the rest of the month to pay Phone, Electricity and Water bills plus food and traveling.
And if we do a basic calculation: Phone: $220 Electricity: $300 Water: $100 Grocery: $1,000 Traveling: $125 per week, $125 x four week = $500 TOTAL = $2,120.00 -$120.00
So be it $81.00, $100.00 or $135.00 per month, some people just can’t afford it.
And I haven’t calculated the 5% commercial and 6% industrial tax ripple effect on consumers.
PROPERTY TAX: IF YOU ARE RENTING A SPACE IN A MALL
Space in Mall can rent for: $20,000.00 per month So, ‘Annual’ Rental Value = $240,000 ($20,000 x 12) Annual Taxable Value (ATV) = 240,000 – 10% (for ‘voids’) ($24,000) = $216,000
Therefore, ANNUAL PROPERTY TAX = $216,000 x 5% = $10,800 per year, or $900 PER MONTH
PROPERTY TAX ON AN EMPTY WAREHOUSE
If you have an unoccupied Warehouse 40x80 in size 3200sqf At a rental value of $3.50 per sqf (3.50x3200 = $11,200) Warehouse can rent for: $11,200.00 per month So, ‘Annual’ Rental Value = $134,400 ($11,200 x 12) Annual Taxable Value (ATV) = 134,400 – 10% (for ‘voids’) ($13,440) = $120,960
Therefore, ANNUAL PROPERTY TAX = $120,960 x 5% = $6,048 per year, or $504.00 PER MONTH
Given how slow business is now, someone with an EMPTY Warehouse will face a $504 monthly penalty.
PROPERTY TAX - ANNUAL RENTAL VALUE – VACANT LAND
The Annual Rental Value of vacant land will be found by taking a percentage of the Current Market Value of the land. Commercial and Industrial 5%
For example if you have a Commercial or Industrial piece of land worth $5 Million dollars you subtract 5% (5,000,000 – 5% = $250,000) and then subtract 5% from $250,000 ($250,000 – 5% = $12,500)
Therefore, ANNUAL PROPERTY TAX = $5,000,000 -5% = $250,000 -5% -$12,500 per year, or $1041.00 PER MONTH.
THE DONKEY LOGIC IN PROPERTY TAX
It is obvious the Property Tax will be passed on to the “consumer”
The government itself being a consumer, how much more it is going to cost the government for goods and services when Property Tax is applied?. I am sure it is going to be more than they are hoping to collect from Property Tax.
For example: Contractors would be taxed at 6% industrial rate, they would pass that rate on back to the government. PLUS the additional cost from their supplies . so a contract like the Manzanilla highway could easily go from $400 Million to $450 Million because of Property Tax, so the $500 Million the government is planning to collect from Property Tax could easily be wiped out.
Last edited by Honeylu on Tue Jun 06, 2023 8:44 pm; edited 9 times in total
Honeylu Moderator
Posts : 571 Join date : 2011-01-27
Subject: Re: EFFECTS OF PROPERTY TAX Sat Mar 03, 2018 8:13 pm
PROPERTY TAX ON AN EMPTY WAREHOUSE
If you have an unoccupied Warehouse 40x80 in size 3200sqf At a rental value of $3.50 per sqf (3.50x3200 = $11,200) Warehouse can rent for: $11,200.00 per month So, ‘Annual’ Rental Value = $134,400 ($11,200 x 12) Annual Taxable Value (ATV) = 134,400 – 10% (for ‘voids’) ($13,440) = $120,960
Therefore, ANNUAL PROPERTY TAX = $120,960 x 5% = $6,048 per year, or $504.00 PER MONTH
Given how slow business is now, someone with an EMPTY Warehouse will face a $504 monthly penalty.
Honeylu Moderator
Posts : 571 Join date : 2011-01-27
Subject: Re: EFFECTS OF PROPERTY TAX Sat Mar 03, 2018 8:19 pm
FACTORS USED TO CALCULATE VALUE OF PROPERTY • 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
Honeylu Moderator
Posts : 571 Join date : 2011-01-27
Subject: Re: EFFECTS OF PROPERTY TAX Sat Mar 03, 2018 8:21 pm
THE DONKEY LOGIC IN PROPERTY TAX
It is obvious the Property Tax will be passed on to the “consumer”
The government itself being a consumer, how much more it is going to cost the government for goods and services when Property Tax is applied?. I am sure it is going to be more than they are hoping to collect from Property Tax.
For example: Contractors would be taxed at 6% industrial rate, they would pass that rate on back to the government. PLUS the additional cost from their supplies . so a contract like the Manzanilla highway could easily go from $400 Million to $450 Million because of Property Tax, so the $500 Million the government is planning to collect from Property Tax could easily be wiped out.
Last edited by Honeylu on Tue Jun 06, 2023 1:13 pm; edited 1 time in total
Honeylu Moderator
Posts : 571 Join date : 2011-01-27
Subject: Re: EFFECTS OF PROPERTY TAX Mon Mar 05, 2018 10:45 am
PROPERTY TAX - ANNUAL RENTAL VALUE – VACANT LAND
The Annual Rental Value of vacant land will be found by taking a percentage of the Current Market Value of the land. Commercial and Industrial 5%
For example if you have a Commercial or Industrial piece of land worth $5 Million dollars you subtract 5% (5,000,000 – 5% = $250,000) and then subtract 5% from $250,000 ($250,000 – 5% = $12,500)
Therefore, ANNUAL PROPERTY TAX = $5,000,000 -5% = $250,000 -5% -$12,500 per year, or $1041.00 PER MONTH
Honeylu Moderator
Posts : 571 Join date : 2011-01-27
Subject: Re: EFFECTS OF PROPERTY TAX Sat Apr 28, 2018 1:11 pm
1- income Tax 2-Corporation Tax 3- Health Surcharge 4- N.I.S 5- V.A.T 6- Business Levy 7- Green Fund 8-Motor Vehicle Tax 9- Fuel Tax 10. Online Tax 11. Stamp Duty 12. Tyre Tax