The Lt. Gov.'s office said property tax bills for 2005 will be mailed by the end of the month. A government spokesperson blamed the 7-month delay on the traditional excuse of "a computer software problem." There also were "printing issues," the government representative told the St. John Source.
Here's why you should care about this even if you don't own property on St. John. Villa rental rates could explode.
The bills are based on 1998 property valuations. It's a long story why, but there is a territory-wide real estate re-assessment going on now. It is reasonable to estimate that property values have tripled on St. John in the past 8 years while taxes have held steady. There are some who expect property taxes could, likewise, triple.
Ask yourself - if you owned a rental house on St. John, and your property tax bill went from $2,000 a year to $6,000 a year do you think you'd raise your prices?
I'm not saying villa costs are going to skyrocket; competition among the some 600-properties will still be a factor. But rental prices have been flat for three years, while electricity (How about $600/month?), water, and labor costs have soared. There are those in the government who understand that inflating property taxes could well kill the golden geese. We'll have to wait and see.