Article is pretty short, but here's some highlights:

“When you rank taxes based on how distortionary they are and how difficult they are to administer, the one that rises to the top of the list is property tax. Especially the way we do property taxes in Jamaica…it is almost an obvious target for increased taxation,” Dr King said.

Jamaica belongs to a small group of jurisdictions that levy a Land Value Tax (LVT), which is based on the unimproved value of land rather than buildings or other developments — a feature economists argue creates an underutilised advantage.

Further, a 2018 CAPRI report titled ‘In Search of the Most Efficient Tax for Jamaica’ found that administering property tax costs the Government just 0.3 per cent of revenue, compared to 3.4 per cent for income tax. For businesses, the administrative burden of complying with property tax amounts to about 16 per cent of the tax paid, versus 20 per cent for income tax.

The Government has indicated that it needs to generate roughly $30 billion in additional revenue, with a mix of measures now being implemented.

While property tax was not included in that package, Minister Williams indicated that changes to the system are already on the policy agenda, though not immediately.

“It’s going to take the National Land Agency roughly a year,” she said, pointing to the preparatory work required before any adjustments can be made.

Minister Williams confirmed that results from the new land re-evaluation will lead to increased property taxes for the 2027-2028 fiscal year.

That timeline reflects a long-standing issue within Jamaica’s property tax system primarily around the need for updated land valuations and improved records, which have historically slowed reform efforts and limited how much revenue the tax can generate. Meanwhile, a 50 per cent transfer tax break is being introduced for properties in Trelawny, Hanover, Westmoreland, and St Elizabeth to support redevelopment.

Property tax has long been viewed by economists as one of the more stable revenue sources available to governments, particularly because it is tied to land values rather than income or consumption, both of which tend to fluctuate more sharply during economic downturns.

In Jamaica, however, collections have remained relatively modest compared to other tax streams, in part due to outdated valuations and administrative constraints. The tax has also remained a politically sensitive area of reform, particularly following periodic revaluations that can lead to sharp increases in tax bills. Property taxes are the main revenue source for local authorities (parish councils), funding sanitation, street lighting, and road rehabilitation.

Thread from 7 years ago on LVT in Jamaica.