On 31st August 2006, The Property Tax Act was passed. This replaced The Land and House Tax Act (CAP 251) which was passed in 1906. This 1906 Act stated that property was to be valued using the Annual Rental Value method and allowed for two payments, in April and October at a rate of five percent (5%). This method was difficult to understand and somewhat confusing to taxpayers.
The new act changes the valuation method to the Market Value Method. This method values property by what it would fetch in the current market if the transaction was conducted between a willing buyer and seller. This method values property without bias or favor. The tax is now payable in a single payment due on or before the 30th June in each year. Each year a demand notice (bill) is sent to property owners and must be paid before the due date to avoid interest charges.
This Act came into force on the 1st day of January 2007. All properties in Saint Christopher and Nevis are now valued using this method. Saint Christopher and Nevis Property Tax Act 2006 (No. 13 of 2006) is a link to the Property Tax Act 2006.