The rates of land tax are proposed by the Minister of Finance and are subject to the approval of the Legislature. The Office of the Tax Commissioner is responsible for the levying and collection of land tax and not the Land Valuation Department.
When is a unit capable of being taxed?
When it is physically ready for occupation, notwithstanding the fact that the owner has yet to apply for and be granted a Certificate of Completion and Occupancy with the Planning Department. In other words, the unit is liable for land taxation when it is either occupied or capable of beneficial occupation and is not dependant on the issuance of a Certificate of Completion and Occupancy.
I own a vacant undeveloped lot which is just a field. Is this liable for land taxation?
No. Undeveloped vacant lots are not liable for land tax. However, if the lot is, for example, surfaced and used to store shipping containers and building materials for business purposes, it will be liable for land taxation as commercial storage land.
Do I pay a higher land tax if my property is nicely furnished?
In assessing a valuation unit for land tax purposes, all of the physical characteristics of the property that affect its rental value are taken into account (see Residential property valuation methodology page). However, in accordance with the Land Valuation and Tax Act 1967, we must assume a hypothetical tenancy and in particular, that the property is assumed to be unfurnished. Therefore, the furnishings, good or bad, are ignored when assessing the ARV of the valuation unit.