, 1961-04-05


Press Release $500 -
RESULTS OF THE NEW PROPERTY ASSESSMENT
This is the second of a series of three articles on the new
property assessment system The first concerned the new
methods employed, the third will describe provisions for
explanations Of revised assessment to individual property
owners.
The major result ii the property reassessment survey lies IN the
fact that all properties are now treated uniformly.
Two parcels III land worth $4,000 in the market are now ap-
praised equally. Two houses, the present replacement costs of which
are the same, will be appraised at the same fgure-assuming similar
depreciation This is also true of commercial, industrial and all other
properties taxable under laws Of the Virgin Islands.
Correction Of Inequities
AS happens in other jurisdiction where general reassessments
have not been made for a number Of years lack Of uniformity had
crept into valuations Of real property in the three islands. This was
particularly true in the case Of land where values in all areas had
not not risen uniformly. Where an acre in Section A and another IN
Section B may have been worth the same ten years ago, this was
found not to be SO at the time Of the survey just completed. a" is
now perhaps twice as valuable as @Bo dut to such factors as new road
construction, nearby residential developments and other facilities
and improvements built and installed during the ten year PERIOD.
Overall Increase in Valuations
Another result Of the reassessment process has been an Increase
in valuation for the Virgin Islands as a whole. Although a thoroughly.
conservative approach. of values was taken, such an increase was, Of
course, expected by government officials, property owners and per
sons dealing in real estate.
Total assessed value reported for the tax year 1859 for the three
islands was $~3sOe7y466. Under the new system, preliminary tabula-
tons made early ii March indicate that fer 1850 the total assessed
value will be $~50628OO4 or an overall increase Of approximately
54q6. Final figures will be available in a few days but these are not
expected to vary markedly from the preliminary totals
Such a comparison is not a completely valid one inasmuch as q
considerable number Of properties are included in the 1860 records
which had escaped assessment in previous years. Thus, the overall
increase on the same properties from 1859 to 1860 would be less than
SAY. One of the major reasons for earlier omissions of properties lies
in the fact that complete tax maps had not been prepared Tor the l7
lands prior to the current reassessment project
some Increased. Others Decreased
This does not mean, obviously, that valuations OF all properties
will be tipped by SAX. In fact, many will be valued at figures lower
this year than last, while some will carry an increase greater than
the overall average. Properties increased are those Which We're
mder-assessed in previous years and whose owners received unjust
$50 49, - - 1AL.~r Thocoo rival for fY
viii now receive 4 reduction. This is the result Of the application Of
the principle of uniformity.
ii IS important to note the distinction between ssessmen ana
taxes. The figures above relate to assessments on valuations. Taxes
lshed tax rate.
Comparison by Islands
Percentage increases in st. Thomas and St Croix were found q
Be very similar as shown in the table below. a greater rise occurred