Dear Heather,

I think my annual rental value has changed, then I heard the land tax changed, then I heard it changed again. I’m confused, how can I find out about this stuff?

Confused Homeowner

Dear Confused Homeowner,

Recently the ARV draft copy was introduced to the public and posted in all post offices throughout the island. Its purpose was to bring all ARVs closer to current levels of market value.

Government does this once every five years or so, because property values change over time and these changes are not consistent across the market. It should be noted that although ARV stands for annual rental value it is used for the following three reasons:

1) It is the basis on which land tax is calculated

2) It determines which properties fall under rent control

3) It is the criteria by which Government decides which properties can be made available for non-Bermudian purchasers. You can check on your new ARV at www.landvaluation.bm. The mass appraisal of all properties on the same basis in the same time frame ensures equity between assessments, but sometimes other factors can contribute to the value.

What does this mean for you?

• Your property has a new ARV and a new land tax rate

On March 21, the Ministry of Finance announced that they had clarified and corrected some land tax issues that had been previously overlooked.

Therefore, new tax rates and bands were introduced to reflect the tax effect of the decreased ARVs. These will be retroactive to January 1, 2016; some properties may get a reduction in their land tax bills!

You can find the new land tax calculation sheet at the tax commissioner’s office.

• Are you over 65?

If you are over 65 years old, live in the unit that you own and are Bermudian, you are exempt from land tax on the first $45,500 of the ARV of your property. You will have to apply to the tax commissioner to be registered for this exemption, and they will have to confirm that you qualify.

• Are you a landlord?

Any property with an ARV of $22,800 and under will fall under rent control.

The purpose of rent control is to regulate and control rent increases and evictions of residential tenancies at or below a specific ARV level.

This means that landlords must seek permission from the rent commissioner to increase their rents before charging their tenants.

Questions regarding this matter should be addressed to the rent commission office.

• Does your property fall into the “non-Bermudian” category?

Overseas buyers can purchase house with an ARV of $153,000 or more and condos with an ARV of $32,400 or more that are not in a Government-sponsored complex.

Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332-1793. All questions will be treated in confidence. You can read this article on Facebook by visiting Ask Heather Real Estate