Property tax: What’s changing

CURRENTLY: Owner-occupied residential properties are taxed at a concessionary 4 per cent rate.

In addition, owner-occupied residential properties with an annual value (AV) of below $10,000 can enjoy the ongoing 1994 property tax rebates ranging from $25 to $150, depending on the AV of their properties.

The AV is the estimated annual rent of your property if it were to be rented out, excluding the rent for furniture, fittings and any service charge.

All other properties are taxed at 10 per cent.

BUDGET 2010:

For property tax payable from January next year, the 1994 property tax rebates will be replaced by a progressive property tax schedule for owner-occupied residential properties:

0 per cent for the first $6,000 of AV;
4 per cent for the next $59,000 of AV;
6 per cent for the balance of AV in excess of $65,000.
Non-owner-occupied residential properties and other properties will continue to be subject to 10 per cent property tax.

Source: Straits Times, 23 Feb 2010