Dear Heather,

My grandma is over 65 and she has just received her land tax bill. I know the annual rental values have gone down and the land-tax rates have gone up, but what are the new laws regarding seniors? Are they still exempt from land tax?

Concerned over senior

Dear concerned over senior,

This is a question that I get asked a lot at the moment as the new land-tax bills have just come out. There have been many changes recently and the Tax Commissioner’s office has handled it really well.

However, a few mistakes are inevitable — it is only human nature — therefore it is in your best interest to know what the parameters are regarding seniors. Seniors who own and live in a house with an ARV of $45,500 or less are entirely exempt from land tax even if the property is jointly owned with a spouse, sibling or child. As long as the senior is living in the unit the exemption applies.

However, if the house has additional apartments, the senior is not exempt from land tax on those, it only applies to the unit the senior is living in.

If the home has an ARV of more than $45,500 then the senior residing in the property is only liable for land tax on the ARV above $45,500, which will be higher as new rates are in effect. For example: if the ARV is $66,600, land tax is payable on the portion over $45,500 at the new rates. So what is the land tax? $45,500 from $66,600 equals $21,100 x the tax rate of 12 per cent — $2,532.

The rates below can also be found on the Bermuda Government website under the Office of the Tax Commissioner.

ARV($)/Rate of Land Tax

1-11,000/0.80%

11,001-22,000/1.80%

22,001-33,000/3.50%

33,001-44,000/6.50%

44,001-90,000/12.00%

90,001-120,000/25.00%

120,001+ /47.00%

• Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 27 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. Read this article on Facebook: Ask Heather Real Estate