Homeowners hit by significant hikes in land tax bills could be in line for rebates after rival political parties worked together to correct an error made by the Bermuda Government.

The Progressive Labour Party had insisted a new schedule of land tax charges outlined last December in the Land Tax Amendment Act (No. 2) 2015 was unfair because it increased the burden on the working class while reducing it for the wealthy.

On Monday night in the House of Assembly, Bob Richards, the Minister of Finance, apologised for the mistake and introduced a revised schedule and amended Act that he said would come into force in June.

“I would like to apologise for the confusion. Citizens expect their government to be clear and concise,” he said. “We have not met that standard in this instance. The buck stops with me. I take full responsibility.”

Before the December changes the land tax rate for the $0 to $11,000 property band was 0.6 per cent; $11,000 to $22,000 was 1.2 per cent; $22,00 to $33,000 was 2.4 per cent; $33,000 to $44,000 was 4.8 per cent; $44,000 to $90,000 was 9.6 per cent; $90,000 to $120,000 was 19.2 per cent and more than $120,000 was 23 per cent.

The revised schedule means the $0 to $11,000 land tax band drops from 1.8 per cent to 0.8 per cent, the $11,000 to $22,000 band goes from 2.5 per cent to 1.8 per cent, the $22,000 to $33,000 rate drops from 4.4 per cent to 3.5 per cent, the $33,000 to $44,000 band goes from 6.8 per cent to 6.5 per cent, the $44,000 to $90,000 rate increases from 11.6 per cent to 12 per cent, the $90,000 to $120,000 band increases from 21.2 per cent to 25 per cent, and the over $120,000 rate rises from 25 per cent to 47 per cent.

David Burt, the Deputy Leader of the Opposition, lambasted the Government for the error, describing the Bill as a “comedy of errors” in light of a previous mistake relating to the annual rental value exemption threshold for seniors.

Mr Burt told the House the mistake needed to be fixed immediately with retroactive effect so that those overcharged could be reimbursed.

After further bipartisan discussions the new schedule of land tax rates replaced the December schedule and the 2015 Act was passed unanimously, enabling homeowners overcharged in January to receive rebates in June, while those undercharged will make up the shortfall.

Furthermore, during the same debate the corrected ARV limit for seniors’ $15,000 exemption to land tax was also clarified as $45,500 and also passed.

Mr Burt told The Royal Gazette: “It is extraordinary when a government agrees to amend a revenue Bill on the floor of the House.

“The original Bill resulted in many working-class people seeing their taxes more than double while wealthy homeowners received a tax cut.

“We’re pleased that the Government firstly realised the error of their ways and looked to address the issue with revised rates that put less of a burden on the working class and more on the wealthy.

“Secondly, that they agreed to a PLP amendment to make the revised rates retroactive so those who saw their land tax bill more than double for the first six months on 2016 would be able to get a refund.

“It shouldn’t have happened in the first place, but at least this time — to his credit, the Minister of Finance accepted responsibility for his mistake.”

Michael Dunkley praised Mr Richards for correcting and clarifying the issue in an “equitable and fair manner”.

“Mr Richards extended tax protection to senior citizens and cushioned property owners in the lower ARV tax brackets,” the Premier said. “As a result, it is estimated that the land tax bills for some 97 per cent of households will amount to a small increase, no change, or a decrease from their tax bills last year.

“This was a progressive response to a complex challenge created by an unprecedented decline in the value of Bermuda real estate that began in 2009 and continued through to 2014.It also ensures that Government will maintain revenues necessary to meet its deficit reduction targets and provide the everyday services Bermudians depend on.

“Mr Richards brought forward the amendments after hearing the concerns of people about their land tax bills as well as concerns raised by the Opposition. The amendments he fashioned stand as a quick and responsible response to legitimate public concerns.

“I am particularly pleased that the revised tax rates mean that people living in the most expensive homes pay more tax than others. Progressive taxation is now embedded in the new land tax regime. It amounts to one more step in building an equitable and fair Bermuda.

“The process also showed how both sides of the House can work together in a bipartisan fashion and we’re pleased to do that wherever possible.