NewsWhore
02-22-2011, 02:30 PM
If the National District Municipal Council does not reconsider the new property tax ordinance, rents could increase by an amount that depends on the property value, as well as increases in condominium maintenance fees. According to Dominican Housing Builders and Promoters Association president (Acoprovi) Fermin Acosta, this situation could cause a reduction in housing demand, despite the country's housing deficit of around a million units. Some sectors have described the resolution as a violation of Article 200 of the DR's Constitution. The ordinance, which so far the city has not implemented until it is discussed completely, orders a 2% tax on every RD$1,000 of the assessed value. The city government would assess the values of the properties.
So, a house or an apartment that is worth RD$3 million would pay RD$6,000 every year, with the payment of a first installment every 15 February and a second on 30 August. On an apartment valued at RD$4.5 million the payment would be RD$9,000 and for an apartment worth RD$10 million the taxes would be RD$20,000. In the face of these taxes, property owners in the National District would be forced to pass on these expenses to their tenants' rents. "The costs would go up directly", said the Acoprovi president.
More... (http://www.dr1.com/index.html#5)
So, a house or an apartment that is worth RD$3 million would pay RD$6,000 every year, with the payment of a first installment every 15 February and a second on 30 August. On an apartment valued at RD$4.5 million the payment would be RD$9,000 and for an apartment worth RD$10 million the taxes would be RD$20,000. In the face of these taxes, property owners in the National District would be forced to pass on these expenses to their tenants' rents. "The costs would go up directly", said the Acoprovi president.
More... (http://www.dr1.com/index.html#5)