Sir, – Whether based on value or size, the proposed property tax will surely involve the kind of inequity that characterises virtually every tax, allowance and benefit in our public finance system until we introduce a mandatory annual return of income and capital for every adult in the country. This would enable a tailored, progressive and fair tax regime, while avoiding such anomalies as a property tax for those in negative equity, medical cards for elderly millionaires, child benefit for younger ones and universal grants for farmers, whether subsistence or corporate rancher.
May I also suggest that the property tax for tax exiles be a significant multiple of that imposed on the rest of us.
After all, in an emergency, the Bermuda police or the Swiss fire brigade are a long way off. – Yours, etc,
Sir, – In the past the State received substantial funds by charging a percentage of the sale price by way of stamp duty, which resulted in the State benefiting from the property boom. Our political leaders assumed that this income would continue and based their budgets on this income stream, which then disappeared with the collapse in property prices. In the event that the property tax is to be based on the value of the house, that tax will be open to the same problem – in a boom, the tax take will increase, but will decrease in recession. If the intention is to have a sustainable tax base, then perhaps a tax based on area would be more appropriate. – Yours, etc,
Sir, – A property tax based on valuations will require staff to maintain a national valuation database, more staff to value property, more staff to challenge property valuations and yet more staff again to resolve disputes over valuations. No prizes for guessing who dreamt this one up. – Yours, etc,