Experts fear that the latest tax measures will help slow down activity in the real estate sector to a virtual standstill.

Government increased transfer tax from four to five per cent and stamp duty from three per cent to four per cent on properties.
It also proposed measures that will more than double property taxes for persons owning land with a value of at least $1 million.

But the continued devaluation is also hurting the sector.

Vendors only want US dollars, but purchasers want their contracts in Jamaican dollar, the realtor associate said.
"If they enter into US contracts, the price, (Jamaican dollars) they are going to pay at signing and at closing are two different figures"...

"When the vendors (sellers) calculate their net out, a lot of them are going to say it's not worth it with the devaluing dollar"...fees alone could now run up to 16 per cent of the sale price.

Observer Link:
www.jamaicaobserver.com/business/-Real-estate-prices-to-remain-stable-_13881547

With the government's stated aim to raise $3.4 million of revenue in new taxes, ought they not be aggressively attempting to collect the $6.4 million in property taxes in arrears, thereby supporting, not penalizing, the faithfulness of those who pay their taxes, instead of ignoring/rewarding those who shirk their duties.

Who comprises these tax malingerers...are they too "important", well-situated to pursue, in the manner of bounty hunting, whereby the the cost of the pursuit/collection ought to be small percentage of the "big catch"?

I doubt the rise in fees will do anything to hamper real estate transactions. If a buyer wants to buy something, he will do so. One or two extra percent will not stop a deal.

On the other hand, there are countless people who do not pay their taxes whether they be their property taxes or taxes on their employees. The government appears to have gotten too lazy to track these people down or force them to pay what they owe so it looks like they are busy finding other sources of revenue. Very little of what's collected flows back to the citizens in terms of services or infrastructure. This is not a situation like in America where those at the bottom of the economic ladder pay a disproportionate share to the government. This is more like those who choose not pay usually get away with it and if they are caught the penalties are ridiculously low.

Opinion...this is no argument to your O-pining. After All, everyone is entitled.
However, regarding your: "I doubt the rise in fees will do anything to hamper real estate transactions. If a buyer wants to buy something, he will do so. One or two extra percent will not stop a deal."

You very well may be an expert in the current Real Estate milieu, but can we really, universally, relate to the market behaviour of all Sellers & Buyers?
To keep, somewhat, up-to-date on these matters, I defer to the KÚYA (Coldwell Banker Jamaica Realty Magazine), which asks the Question: "Are we in a Buyer's Market overloaded with Inventory or do Sellers still have some leverage?"

Discounting a bit for Market Segment & Location (e.g., urban/rural), the head of Investments at the National Investment Fund (Ja) "believes that it is the Buyers who are holding the knives handle under current market conditions, while Sellers are hard put to get value for their assets.'There may be an oversupply of Inventory'...suggesting that Buyers are definitely the ones at an advantage in current market conditions.

Opinion...Any real estate shopping cruise around Treasure Beach might indicate the number of properties for sale (even if posted Signs are not apparent), and many of the potential Sellers are not prepared to let their sweet Realty Investments go for what they may consider insultingly low offers, and therefore wait out the market, quoting Miss Scarlet (Gone with the Wind): "After all tomorrow is another day!"

KÚYA goes on to posit that "the pool of qualified Buyers has effectively shrunk. "We live in a very different time than we did 10 years ago. Credit is much harder to come by so one is only a true Buyer if he or she either has the cash to buy the property one desires or has established sufficient credit with a lender to make the desired purchase. A qualified Buyer that can prove that he or she is ready, willing and able to close a transaction is in a tremendous bargaining position in this market. Only a truly qualified Buyer is in a position to take advantage of all the benefits that exists in a Buyer's Market." (Jason Rudd, CEO of Jamaican Redevelopment Foundation).

....sounds like a stale-matey situation, nuh, where without crippling pressure to sell, and buyer's obstinacy to budge from what they perceive as Fair Market Value (FMV), the description of "doldrums" may not be that far off.

So rising transactional fees/costs (including those shared by the Buyers-Sellers), and any other conditions affecting the Net Price of the Sale would seem to be of great importance, especially where there is a big disparity between Selling Price and the Offer Sheet.

Zeb your figures above should be billions and not milions

Bowl...Thanks for the CORRECTION, the numbers QUOTED for delinquent Property Taxes should have been J$6.4 billion, and the goal that the government aims to raise, in new property tax revenues, should have been stated as J$3.4 billion.
(these extra ZEROS in money values may soon require wheelbarrows to physically move around our ordinary cash transactions)

Have you checked your Property Tax Bill lately?
http://go-jamaica.com/news/read_article.php?id=43703

In addition to the current period which becomes due on April 1, efforts are being made to address the issue of property tax arrears, which now stands at $6.4B. The tax authority in partnership with personnel from the Ministry of Local Government and Community Development is increasing its enforcement and collection activities to recover the outstanding amount.

Property owners in arrears are therefore liable to have strong action taken against them, in accordance with the tax laws. TAJ is, therefore, appealing to property owners to make every effort to settle their outstanding property taxes.

Persons are advised to speak with the compliance staff at TAJ to make suitable arrangements, if they are faced with difficulties in paying their property tax arrears, to avoid possible Court action.

Recall also the time when the government planned to shame property owners into paying-up by "gazetting", in newspapers, the names of the PTD's (Property Tax Delinquents/Dodgers)...how far, in legal challenges & policy directives, did this go?

http://jamaica-gleaner.com/gleaner/20110317/lead/lead7.html

Well it's official> Anyone going on-line to pay their Property Taxes this morning will find some "un-healthy" increases...well in excess of 150%.
It's hard to imagine that the Tax Administration won't be flooded with Appeals & the righteous indignation of citizens who faithfully pay their taxes, but because of the tax delinquencies in the amount of J$6.4 billion, must now carry that burden, instead of channeled through government's enforcement & legal apparatus....Shame-Shame-Shame!

Tax Administration Jamaica Link:
www.jamaicatax.gov.jm

The flood of Protests over the Property Tax increases PROMISES to become a deluge. Here's but an "ordinary" citizen's woeful complaint:

Why Ask Us To Pay More Taxes?...How can we survive in this country?

Among the tax measures announced by the Government of Jamaica recently was the increase in property tax, effective April 1, 2013. Law-abiding citizens have been visiting the Inland Revenue Department to verify the new amounts they are required to pay and are just realising the magnitude of the increase.

My property tax, for example, has been increased from $6,000 annually to $14,500 (240%). I was complaining bitterly until a colleague of mine went to investigate the new amount she will be charged. Much to her consternation, her property tax has been increased from $21,000 to $55,000 (260%) annually. Now, this is solely a residential property owned by a civil servant.

Minister Phillips, how can we have hope in this country? The tax package you presented has caused every single consumable item to be increased.
A civil servant is being asked to pay $55,000 annually for property tax, while you are unstintingly bargaining for another wage freeze.

Poor people are crying out and this Government is not listening. I would also like to remind Minister Phillips that those same properties attract annual Insurance charges of more than $140,000 in addition to the cost of Maintenance for normal wear and tear.

Why ask us to pay more because you fail to collect from the tax dodgers?

Minister, you are penalising law-abiding citizens when you fail to institute effective tax-collection measures. Sir, I guarantee you, instead of achieving a higher level of compliance, your present strategies will only seek to create more tax dodgers.

Please listen to our cries, minister, as poor people are suffering!

by Pauline White (paulandie2011@gmail.com)

Gleaner Letters Link:
http://jamaica-gleaner.com/gleaner/20130403/letters/letters5.html