Senate approves Hamilton sewerage tax
The Senate unanimously approved a new tax today to ensure the proper upkeep of the City of Hamilton's sewerage system.
Senator Michael Fahy, the Minister of Tourism, Transport and Municipalities, presented the Hamilton Sewerage Amendment Act 2016 to his colleagues at Sessions House this morning.
He confirmed that the new tax would go towards capital improvements of the ageing system rather then on operating expenses, which total $778,000 for the 2016 fiscal year.
Mr Fahy explained that the levy for commercial properties with an annual rental value of more than $100,000 would likely reach a maximum of $250 annually.
Accordingly, properties with an ARV of $30,000 would be charged around $75 a year, and $20,000 ARV properties around $50 annually.
He anticipated that the Corporation of Hamilton's annual revenue from the new tax would be approximately $400,000 per year.
A Bill to reduce the threshold at which houses come under rent control was also passed.
The Partnerships and Companies Amendment Act 2016 will lower the annual rental value ceiling from $27,000 to $22,800.
Patricia Gordon-Pamplin, the Minister of Home Affairs, had explained in the House of Assembly: “This became necessary when the revised land tax rates brought into operation by the Land Tax Amendment Act 2016 on January 1, 2016, lowered the ARVs of many properties.
“By lowering the ARV ceiling, we will maintain the number of rental units under rent control. Those will be relatively unchanged at 17,061 units.”
Finally, legislation to provide more flexibility for the management and operation of Bermuda partnerships was approved.
The Partnerships and Companies Amendment Act 2016 also clarifies the legal impact of certain changes in the constitution of limited partnerships, as well as certain activities of limited partners.