Property Tax
Act No. 2 of 1997 is an Act to provide for the imposition and collection of tax on real property and for connected matters.
What is Property Tax?
Property Tax is the charge placed by Government on Real Property. The Tax is an Ad valorem Tax i.e. The Property is assessed at Market Value and a Taxable Rate is applied based on the Land use Classification.
Valuation takes into account the following:
-
Location
-
Land prices in the area
-
Development potential
-
Type of land
-
Size of land and other relevant factors
-
Condition of building
Who pays the tax?
The tax is borne and payable by the owner, as well as by occupiers of buildings on Extended Family Land. Tenants of Property are also entitled to pay Property Tax where an Arrangement is stipulated in the Lease Agreement. The Tax is made payable to the Government of Grenada.
When the tax is due:
Demand Notices are sent out to property owners from the 1st January each year. The property owner is entitled to 5% discount if 50% of the tax is paid by March 31st and the remaining 50% is made payable by June 30th. After August 29th, 20% fine shall be added if the total amount is not paid. Interest of 1.5% per month accrues from the beginning of the month following the month in which the penalty was imposed on the outstanding amount.
Current rates available:
Two separate rates are set for each class of property. A rate for the building and the other for land. The rates are as follows:
|
Classification
|
Land %
|
Building %
|
| Agricultural | 0.0 | 0.0 |
| Agricultural Idle | 0.2 | 0.0 |
|
Amenity
|
0.1
|
0.1
|
|
Commercial
|
0.5
|
0.3
|
|
Hotel
|
0.3
|
0.02
|
|
Industrial
|
0.3
|
0.2
|
|
Institutional
|
0.1
|
0.1
|
| Residential | 0.2 | 0.3 |
|
Reserve
|
0.1
|
0.0
|
|
Waste
|
0.1
|
0.0
|
Exemptions:
An exemption of $100,000.00 is deducted from the building value of an owner occupied property. Only one property can be given a homestead exemption. The remaining Assessed Value is multiplied by the classification rate.
NB: No tax is charged on agricultural lands.
Where are the taxes payable?
All property Taxes should be made payable to the Government of Grenada at the Inland Revenue Division on the Carenage or the District Revenue Offices in each parish.
The rights of the Taxpayer to object and appeal:
The Taxpayer or Agent can object within fourteen days after being served with a Valuation notice.