On July 1 double taxation for residents of the town of St. George's will be eliminated ? for six months at least.

Finance Minister Paula Cox announced during the 2004 Budget Speech earlier this year that Government and the Corporation of St. George's will move quickly to eliminate the double taxation from Corporation property taxes and Government Land Tax.

"In light of this, Government will provide an operational grant of $350,000 to the Corporation in 2004/2005," Ms Cox said in the Budget Statement.

"Government also will work with the Corporation during the 2004/2005 financial year to identify savings and other economies in order to eliminate the need of a similar grant in 2005/2006."

At a Corporation of St. George's meeting at the Penno's Wharf cruise ship terminal last night, St. George's mayor E. Michael Jones announced the Corporation has received a cheque from Government for payment for those taxes due on July 1.

On that date residents will receive a letter saying the taxes they owe for the next six months are paid for, although residents who are behind in their taxes will still have to make up those arrears.

As for what will happen when those six months are up, Mr. Jones said talks are ongoing.

By April of 2005 he hoped a final plan to eliminate St. George's property taxes would be in place. "I don't anticipate you'll have to pay Corporation taxes unless talks change," he told residents.

However, he added: "This is what I am anticipating at the moment ? but I cannot speak for Government."

The elimination also means there will be an increase in the amount of people able to vote in Corporation elections, now that voting power is not tied to taxes, he said. "It is fully anticipated that there will be an increase in voters."

Old Town residents have complained for years about the double taxation, and Mr. Jones has campaigned to end the practice at the last two Corporation elections.

Some residents in Bourne Drive have been boycotting paying the Corporation their taxes for five years in protest at not getting some basic services.

The residents claimed they were paying the Corporation but not getting services such as being on the sewage mainline, trash collections and road repairs.