MONTEGO Bay Mayor Richard Vernon says more than $1 billion in property taxes remain unpaid by residents in gated and other formal communities across the municipality, putting a strain on local authorities’ efforts to maintain infrastructure in St James.
“About 90 per cent of [these communities] are paying, but as to the percentage of the population within the community that is paying, it varies, and not just paying at the current day rate or what is outstanding currently, but the accrued amount as well,” said Vernon.
“I will tell you there are communities like Ironshore and those areas with $500 million outstanding. Bogue Village, 1,000 lots are outstanding for the fiscal year, but there is also an accrued amount… I don’t remember the exact figure, but we have a couple billion in terms of property taxes outstanding across the municipality,” he told the news.
“For Meadows of Irwin, I believe they are at about 30 per cent in terms of compliance and that is putting a strain on the resources that we have to work with to cover large communities like Meadows of Irwin and smaller ones,” he said.
The National Land Agency states that property, or land tax, is imposed on a person in possession of land, such as the owner, occupier, or mortgagor. The tax is based on the unimproved value of the land.
Property tax covers community infrastructure and civic improvements, the rehabilitation of parochial and farm roads, as well as the provision of minor water supply and more.
The mayor said that it is often the residents of informal communities who are compliant in paying their property taxes, and it is “a little bit discouraging” to know that it is the well-established communities that have everything in place, in terms of water, street lights, and roads, that present the most challenges with collection.