Parish Council losing millions ... from squatters outside of the tax net
Published:Sunday | March 27, 2011 | 12:00 AM
Adrian Frater, News Editor
Western Bureau:
WHILE THE 19 unplanned communities in Montego Bay, St James, are mostly seen as hotbeds of criminal activities, there is now solid evidence to suggest that they are also sucking away millions of dollars in potential revenue from the city's coffers.
Based on information garnered from the St James Parish Council, the approximately 40,000 householders occupying these unplanned communities are giving the council a colossal financial beating, raping it of millions of dollars in property taxes, building fees, and other municipal charges.
"We are losing millions of dollars in property taxes as between legitimate and illegitimate householders, the compliance rate is only 45 per cent," said Charles Sinclair, Montego Bay's mayor and chairman of the St James Parish Council.
Based on figures provided by the council, $233.4 million was collected in property taxes. That means uncollected property taxes for 2010 amounted to some $285.2 million.
With such vast sums going uncollected, the St James Parish Council's ability to adequately provide the services expected by legitimate taxpayers is being severely undermined.
In addition to the money lost to unpaid property tax, Sinclair also noted that the council was losing a significant sum from persons who build without submitting building plans, for which a fee is charged.
"Because householders in these unplanned developments, have no land titles, they do not meet the requirements to submit building plans to the council," said Sinclair. "So they simply go ahead and build without getting the approval of the council.
"We are losing a lot of money that way - monies that the council needs for the benefit of the city in terms of the services we now offer," Sinclair added.
However, with the ongoing process of regularisation of unplanned developments in the parish, which has already begun in areas such as Lilliput, Barrett Hall, and Rose Heights, Sinclair believes that over time, more householders will gradually fall into compliance, albeit at a slow pace.
"Hopefully, things will continue to get better as more and more unplanned developments become regularised," Sinclair said.
Creative solution
But while Sinclair seems prepared to wait on regularisation of these communities, Dave Allen, community activist and executive director of the Community Organisation for Management and Sustainable Development, believes that with a little creativity, the matter could be quickly addressed.
"I believe a taxation-through-occupation policy - where all persons occupying lands, whether they are the legal owners or not, pay taxes for the land they are occupying - would solve that problem," said Allen. "It would help to solve some of the other social problems in these areas."
According to Allen, because residents in unplanned communities are not able to secure certain necessary services, they resort to criminal practices to get the services. He said taxation through occupation could solve that problem.
"Too many of our people are being criminalised because their circumstances keep them outside of mainstream society," Allen stated. "As a consequence, many of these people are not able to utilise municipal services legally."
Using the Norwood community as an example, Allen said the community has some 4,000 householders who are not able to access light and water legally because they have no land titles.
"Under a taxation-through-occupation policy, these people would be given certificates to indicate that they are paying taxes," stated Allen. "That would create the scope for them to access the services they require."