Let’s Talk Property Taxes — Rents and Rates
Land rents and rates are important components of land ownership; they are a financial responsibility for landowners. Understanding their purpose and significance is important for anyone involved in land investment or ownership.
What Are Land Rents and Rates?
They are annual taxes that are paid to the National Government and the County Governments. They are specifically related to leasehold properties. Properties with Leasehold certificates are typically assessed annually,? and the owner has to pay the taxes for the ownership to remain intact. These charges are a fraction of the value of the property as assessed by the Government Valuer at the Ministry of Lands. Land Rents are paid to the National Government, while Land Rates are paid to the County Government.
Why Pay Land Rents and Rates?
Land Rents and Rates serve important purposes in maintaining public services and infrastructure, which contribute to the property value. They allow the Government authorities and systems to provide the citizens with basic services such as water supply, garbage collection, road maintenance and all manner of necessary utilities that bring comfort.
Understanding the significance of these payments is essential for landowners to fulfill their financial responsibilities and contribute to the betterment of their communities. By paying these taxes promptly and in full, landowners play a vital role in supporting the growth and development of their localities.
Over time, unpaid land rates and land rents can accumulate into a significant debt burden for the property owner. Accrued taxes may include the original tax amount and additional interest, penalties, and legal fees, making it increasingly difficult for the owner to resolve the debt. This may result in the property being auctioned.
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Conclusion
Overall, landowners must prioritize the timely payment of Land Rents and Rates to protect their investment. If you have questions about taxes for properties you own, we strongly advise that you consult qualified professionals such as Licensed Advocates and Tax Advisors.
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