Land Tax Amendment Act 2019 (No. 10 of 2019)

FA E R N AT F TQUO U BERMUDA LAND TAX AMENDMENT ACT 2019 2019 : 10 TABLE OF CONTENTS Citation Amends section 1 Amends section 2 Inserts section 2A Amends the Schedule Commencement WHEREAS it is expedient to amend the Land Tax Act 1967; Be it enacted by The Queen’s Most Excellent Majesty, by and with the advice and consent of the Senate and the House of Assembly of Bermuda, and by the authority of the same, as follows: Citation This Act may be cited as the Land Tax Amendment Act 2019. Amends section 1 In section 1 of the Land Tax Act 1967 (“the principal Act”)— at the end of subsection (1), insert— “ “tourist unit” means a valuation unit which is used as or forms part of an hotel, cottage colony, guest house, lodging house, club or tourist accommodation for reward, but does not include a vacation rental unit 1 2 3 4 5 6 1 2 (a) 1 LAND TAX AMENDMENT ACT 2019 as defined in section 15A(1) of the Bermuda Tourism Authority Act 2013.”; delete subsection (2) and substitute— For the avoidance of doubt, it is hereby declared that no tourist unit is a private dwelling for the purposes of this Act.” “(2) Amends section 2 In section 2 of the principal Act, delete paragraphs (a) and (b) and substitute— the base rate of $300, where the valuation unit is a private dwelling with an annual rental value of the unit not exceeding $22,000; where the valuation unit is a private dwelling with an annual rental value of the unit in excess of $22,000, in respect of such portion of the annual rental value of the unit as falls within a band specified in the first column of the Schedule, the rate specified in the second column of the Schedule in relation to that band, plus the base rate of $300; subject to section 2A, in respect of a valuation unit not falling within paragraph (a) or (b)— the rate of 8% of the annual rental value of any tourist unit; the rate of 9.5% of the annual rental value of any other unit.” “(a) (b) (c) (i) (ii) Inserts section 2A After section 2 of the principal Act insert— “Special rate for EEZs In respect of any valuation unit (other than a private dwelling) which is situated in any of the economic empowerment zones designated under section 2A of the Economic Development Act 1968, tax shall be charged, levied and collected at the rate of 7% of the annual rental value of the unit.” 2A Amends the Schedule In the Schedule to the principal Act (land tax on private dwellings), delete the table and substitute— (b) 3 4 5 2 LAND TAX AMENDMENT ACT 2019 “ANNUAL RENTAL VALUE BAND $ RATE OF TAX % 1 0 - 11,000 0.8 2 11,001 - 22,000 1.8 3 22,001 - 33,000 3.5 4 33,001 - 44,000 6.5 5 44,001 - 90,000 17.0 6 90,001 - 120,000 30.0 7 120,001 + 50.0 ” Commencement This Act comes into operation on 1 July 2019. [Assent Date: 29 March 2019] 6 3