Published On: Fri, May 16th, 2014

Introduction Land Value Tax at the end of this month

WillemstadWILLEMSTAD - The Tax Inspectorate will begin with the implementation of the Land Value Tax (OZB) at the end of this month. The real estate tax will be replaced. The Tax Inspectorate says that the concepts in the national ordinance property tax have been modernized.

There are some changes between OZB and the old real estate tax. The rates were adjusted and have become progressive. The value on which property tax is to be paid is equal to the price which a property can be sold to any third party who can immediately make us of it. In addition, properties on leased lands become taxable for the lessee of the land.

There will be taxations of all real estate properties which fall under the OZB. According to the Tax Inspectorate, this taxation is expected to take several years to complete because of the large number properties which have to be valued. There are qualified appraisers appointed, who as a team will go into each district on the island to appraise the exterior of the buildings. “Just as it was the case with the property tax, the OZB will be levied according to a five year bracket. The value can only be reviewed in certain situations. “After the taxation, the owner will receive a letter with the new value. Objections may be submitted in writing.

In September, owners will receive the provisional OZB assessment. This is still based on the old value, but the new rates will already be applied. After the final assessment is made, the owner can appeal against the OZB. After final determination or settlement of a complaint, the value will be set for five year. There can be no objections to the value.

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