homeowners.

And many others will see significant increases when new annual rental values and taxation rates are mailed out this month.

The increases will hit homes with ARVs exceeding $28,000, while 75 percent of the homeowners will see a reduction in their bills this year, according to Finance Minister Eugene Cox.

But savings are not expected to exceed a few hundred dollars for many low-end homeowners.

One Pembroke apartment previously valued for rental at $11,700 is now valued at $16,800. The owner's tax bill will drop by $178.96.

The new system has been organised into four $7,200 bands with reduced rates. A 1.5 percent tax will be collected on the first band, three percent collected on the second, six percent collected on the third, and 15 percent collected on the fourth band.

For ARVs exceeding $28,800, a 22 percent tax will be levied on the remaining amount. To offset the significant increase in ARVs, a 60 percent discount will be applied to the final sum.

Mr. Cox said Government will rake in about $6.9 million in extra cash, bringing land tax revenue to $34.6 million annually.

Land valuation officer Chris Farrow said homes in high-demand areas such as Knapton Hill and Tucker's Town were subject to steeper increases.

The ARV of former Premier Sir John Swan's Grape Bay home has increased from $69,900 to $204,000.

His tax obligations will jump from $12,369.96 to $16,152.

And oil magnate John Deuss' home in Tucker's Town's ARV quadrupled from $99,000 to $396,000, while a Point Shares house has nearly tripled to $180,000. Their taxes will be $33,048 and $14,040, respectively.

Commercial properties will also provide further revenue as ARVs have increased across the board and taxation will remain unchanged with a flat six percent rate -- but no discount.

Fortunately for businesses, Hamilton rents have not undergone the same increases as those of residential units.

The ARV of the Bank of Bermuda's Front Street headquarters was set at $1.77 million ten years ago, and has since risen to $2.58 million. Their tax cheque will amount to almost $155,000 this year.

The new valuation list is the first to be released in ten years and comes after 18 months of inspections by the Land Valuation Department. Legislation dictates that property be re-assessed every five years, but updated ARVs were scrapped in 1995 as the United Bermuda Party awaited the results of a review of land tax by an overseas tax consulting firm.

Mr. Farrow said approximately 1,400 changes are made to the valuation list each year as development continues throughout the Island, but changes were assessed at 1989 rental values.

The new lists came into effect on July 1 and owners will have until December 27 to object to their new ARVs. Concerns have been raised about "land rich'' but "cash poor'' homeowners who may not be able to comfortably afford the increases.

The new valuation list is available at the Land Tax Office in Global House on Church Street and at post offices across the Island and online at http:/www.landvaluation.bm. Objection forms are also available from the Land Tax Office.