In keeping with government’s commitment to fair taxation, the taxable assessment on owner-occupied residential property will remain frozen in 2010, says Minister of Finance and Municipal Affairs, the Honourable Wes Sheridan.
“The assessment freeze program we introduced in 2007 has saved Island homeowners an estimated $5.5 million since its introduction two and a half years ago,” Minister Sheridan said. “I am very pleased to announce that frozen assessments will be maintained for another year – this supports our program of fair taxation.”
In the fall of 2009, legislation was passed to ensure that any future increase in assessment on owner-occupied residential property for purposes of taxation will be tied to the Consumer Price Index (CPI) for the previous year. As a result of the legislation, recent stability in CPI dictates that no increase is permitted for 2010.
“That legislation is built around the idea of fairness and predictability for Island homeowners. Given the worldwide economic uncertainty that has challenged all jurisdictions, I am pleased that the new legislation reflects the need to maintain taxes at the lowest possible level,” Minister Sheridan said.
“Under the previous administration, property taxes increased dramatically and abruptly. Our new system will prevent these shocks – and continue to offer much-needed breaks to Island homeowners.”
Between 1996 and 2007, property tax revenues increased from $38 million to $64 million. Since 2007, taxable assessments have remained relatively stable – due mainly to the three-year freeze and the legislation passed in 2009.