Municipalities, NDCs challenged to urgently review property valuation laws

Nov 20, 2016 News

– will allow for tax burden to be more equitable
Minister of Communities, Ronald Bulkan, has urged for talking to be over, and that direct action taken for the review of property valuation laws.
Municipalities and Neighbourhood Democratic Councils (NDCs) have been battling over the years for rates and taxes increases but this has been resisted.
This resulted in many NDCs and municipalities in a cash-strapped situation and unable to take care of their jurisdictions.
Addressing issues pertaining to the revenue base of the three municipalities – New Amsterdam, Rose Hall and Corriverton – in Berbice on Friday, Minister Bulkan said that “the question of property valuations and revaluations is an issue that probably we have been talking about for too long and too much.”
The revaluation is needed to bring valuation of properties and businesses in line with the 21st century.
“We have to stop the talking and get together a dedicated taskforce, now, and start to fast track this question of reform, and instituting modern property assessment scheme, where the tax burden can be more equitably distributed, and where the revenue base of our (town) councils can be addressed in a meaningful manner,” Minister Bulkan stated.
This is to ensure that there are sufficient financial resources that would allow the Councils to attend to their activities and responsibilities, he said in a government release.
Bulkan said that this taskforce would involve the Ministries of Communities and, Finance, and the Local Government Organs.
Minister Bulkan and a team from the Ministry of Communities including Permanent Secretary (PS) Emile McGarrel met with the Mayors, Deputy Mayors and councillors of Rose Hall, Corriverton and New Amsterdam at the Central Corentyne Chambers of Commerce building in Rose Hall, Corentyne.
The interactive session saw the Minister addressing the local councillors’ concerns pertaining to their councils’ lack of funds to execute meaningful projects, the sore issue of valuation of properties and businesses in the municipalities, and stipend for the councillors and tensions within one of the councils.
On the issue of the property valuation/revaluation, Minister Bulkan also told the councillors that the council has the authority to determine the value of property taxes, and to bring these and its other revenue bases in line, with what it needs to meet the expenditure that it requires to carry its annual work programme.
Minister Bulkan assured that the government will continue to support the councils with subventions, to help in the carrying out of some of their duties.
The Minister of Communities said, however, that the government expects that the councillors will in time begin to “take ownership” of their councils. Bulkan pointed out that if the councils work to find their own source of funding, then they would not have to deal with the strings that are attached to the financial support they get from outside sources.
On the issue of the stipend to the councillors, he noted that “there is nothing in the local government legislation that prevents the municipal councils from paying stipends or salaries to their councillors, once they have the means.”
The Minister urged the councillors to examine the means of financial resources within their municipalities and determine how they can leverage these to address this issue.
Addressing the concern of disunity within one of the councils, he noted that “there is a time for politics,” but that this is “not when we find ourselves in our councils; when we have to deliver to our people. When we keep those political blinders on, we are shortchanging ourselves, so once in the council, put that political consideration on the backburner, where it belongs.”
Bulkan urged the “shedding of the baggage” and embracing of those principles that would help the council to bring development and betterment, for the residents of the three councils of Berbice.

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