In a move that one local realtor has labelled a "horror story,'' Bermuda's annual rental values, which are placed on all properties and units on the Island, have skyrocketed in some areas by more than 100 percent.

The changes in the ARVs, which often determine the levels at which property taxes are set and directly influence a foreigner's ability to buy Bermudian real estate, were revealed in the 1995 Draft Valuation List that was placed in post offices Island-wide recently.

That document, which would go into effect in 1996, is said to reflect recent shifts in the property market, though the restructuring appears to follow Finance Minister the Hon. David Saul's promise that "we will be kind to the little man.'' With the new draft, Mr. Steel Butz of Leonard Gibbons Real Estate explained, "More exclusive properties are hit the hardest, whilst the average modest home has had very little change.'' In other words, those living in luxury homes in such areas as Point Shares, Fairylands, Tucker's Town and Harbour or South Roads in Paget have a year before they could possibly be struck with huge ARV increases.

A comparison of the old Valuation List to the draft revealed that a house in Point Shares which is currently rated at $57,600 is now drafted at $104,700, while a Fairyland's house that is rated at $54,300 is now slated to increase to $104,400.

On Harbour Road, the ARV of a house rated at $81,000 skyrocketed to $193,000 in the draft.

Tucker's Town was also hit with increases of $40,000 or more, with the house of US billionaire Mr. Ross Perot, for example, jumping a whopping $102,600 to $193,200 from $90,600.

When contacted by The Royal Gazette , most real estate companies said it was "too premature'' to comment on the proposals and that no clients had made any complaints about them.

Mr. Duncan McBeath, of Dorchester Realty, said: "The penny hasn't dropped yet. I don't think people have looked in the post office.'' And Mr. James Redrobe, of Bermuda Realty, added: "The problem is people don't know about the draft. Land Valuation will not release the draft to us.

Something must be up.'' Meanwhile, Ms Chris Dapena of Darling and Dapena Real Estate called the new draft a "horror story.'' "Some of the houses are up dramatically,'' she said. "The few cases that I have heard of are mind-boggling.'' Ms Dapena also spoke about the worries that some of her clients had about their houses suddenly jumping into the bracket that allows a non-Bermudian to purchase them.

With the current ARV rate for a possible non-Bermudian buyer at $43,800, the new draft changes the situation drastically for homeowners who find themselves suddenly boosted to that bracket.

"Houses that were once rated at $40,000 have increased to $70,000,'' said Ms Dapena.

Mr. Herb Crisson of Crisson & Co. Real Estate said that he too was surprised by the new list.

"Everyone we deal with has gone to check the new ARV levels and are astounded,'' he told The Royal Gazette . "This will make life very difficult for some people.'' But though many Bermudian households might be hit by the newly proposed increases, most modest residences would be somewhat spared.

One house on South Road in Paget, for example, had only increased to $39,000 from $30,000, while houses on the North Shore in Pembroke rose to $12,900 from $8,400.

The heavy increases seemed to be placed on the houses that are already rated at $40,000 and more, though the location of a house also appears to play a big role in the new ratings.

While no change in the land tax bills -- other than the loss of the five-percent discount -- will take place this year, the Finance Minister will announce a revised tax structure in the 1996/97 budget that is to be applied as of July 1, 1996.

This will allow for a longer period of objections to the draft that must be filed at Global House by September 27 of this year.

Mr. Redrobe urged homeowners to "take a look at the draft and put in an appeal.''