Government yesterday delayed publishing new land valuation rates by six months to allow more time to adjust for rocketing house prices.

Home prices have shot up by as much as 30 percent in the past few years, but Government reassured homeowners yesterday that any increases in annual rental values (ARVs) will be nowhere near that.

Progressive Labour Party Sen. Neville Tyrrell said the increases will be small and there may be some decreases.

The draft valuation list has to be published every five years and was supposed to be out yesterday but Senate agreed it will now be delayed until December 31.

The move was supported by the United Bermuda Party which said many Bermudians have become land rich but cash poor and they would be crippled if there was a hefty rise in ARVs.

Sen. Tyrrell said the Tax Commissioner raises more than $40 million each year in land tax and the Ministry of Finance is responsible for setting new tax bands and tax rates.

The policy affects the minimum ARV rate for purchase of property by non-Bermudians, and Works and Engineering and Housing need the information to ensure there is an adequate supply of affordable homes.

He quoted Finance Minister Paula Cox saying in this year?s Budget: ?Government does not propose to increase the revenue yield from Land Tax for 2004/05 by 25 to 30 percent.

?Consequently, a revision of existing tax rates will be necessary in order to minimise the impact of the new valuation list on taxpayers.

?So far as it is possible to do so, Government?s intent is for these required changes to the new valuation list to have only limited effect in terms of the land tax payable.

?However, given the nature of the computation and its complexity, it may be that there will be some small increases or even some small deductions in individual cases.? Land tax bills will remain unchanged until the new draft valuation list takes effect for tax purposes on January 1, 2005.

Opposition Senate Leader Sen. Kim Swan said: ?It is good news that the Minister is mindful that any increases, even so little, could have an effect on many who could not afford to maintain what their taxes would be as the property values have soared.?