City Hall offering interest "discounts" to defaulting rate payers
Cautions potential buyers to ascertain rates and taxes status of properties before making purchases
Stabroek News
May 4, 2007
City Hall has disclosed that it will be waiving all interest charges on outstanding rates and taxes if payments are made in full by May 15.
City Treasurer Roderick Edinboro told Stabroek Business that the decision to remove interest on amounts owed in rates and taxes was "a practical one" that was designed to provide an incentive for defaulters to settle their outstanding rates and taxes in the shortest possible time.
The City Council is also offering an 80 per cent discount on all interest accrued on rates and taxes for payments made in full by June 30 and a 60 per cent discount in cases where rates are paid in full by July 31. Full payment of outstanding rates and taxes by August 31 entitles rate payers to a 40 per cent discount on interest while rate payers making full payment by December 31 will be eligible for a 20 per cent discount in interest charges.
Meanwhile Edinboro is cautioning potential house buyers to ascertain the status of properties as far as rates and taxes are concerned before concluding purchase agreements. He explained that several house owners have found themselves saddled with the previous owner's rates and taxes since under the law the current property owner is liable for the rates and taxes.
Edinboro explained that rates and taxes can be "inherited" at house auctions and properties sold by the courts since compliances are not always sought from City Hall before these properties are sold.
Property valuations in the city were last undertaken in 1996 and Edindoro explained that while several properties had appreciated in value since then the council has been unable to secure any increases in rates and taxes. "In addition to the increased value of properties the council has also been faced with increased operating costs including higher electricity tariffs and no additional funds have been available to cover these expenses, he said.