Liberia - Register a Property Tax

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Procedure

A person who wishes to pay for a property tax in Liberia should by register with the ministry of finance revenue department. The amount of property tax attributed to each property is determined largely by a standardized method of assessment and valuation. Every five (5) years, and primarily in the Monrovia area, a team of real estate assessors from the Ministry scurry about in urban and semi-rural areas to determine the value of commercial and private lands and buildings.

• The assessors will visit the place to asses ans value the buildings basing on the pricing of construction materials used, for buildings, and the location, if the place has a vacant lands
• A visual account is taken into consideration of the amount of concrete, windows, tiling, plywood, steel-rods, and other materials used in a buildings constructions as asses the tax.
• This inventory exercise serves as the basis for determining a value for each built-on property, in todays prices, for tax purposes.
• To determine the value of vacant lands, Assessor use deeds, purchase records, and the value of neighboring vacant property. Depreciation, due to war or natural forces, is also accounted for in the assessors valuation and usually reduces the assessed value of a property.
• With a valuation complete, each property is then taxed at an established property tax rate contingent on the value and usage category of the property.
• The tax rate on residential dwelling is 0.25% (1/4%) of each propertys assessed value.
• The tax rate for commercial property is 0.5% of each propertys assessed value; farm land is taxed at the same rate as commercial property. Vacant land has a sharply higher tax levy at 5% of the lands value.
• The historical Head Tax of $10USD imposed on each individual living in a village or township was repealed on hardship and, instead, replaced with the more practical annual Hut Tax of $200LD (about $4USD) on each rural dwelling instead.
• An annual tax levy of 10%, aptly called Coast Guard Tax, is also imposed on rental income from leaseholds on commercial and residential property.
• All Property tax levies are due on June 31 of each year, coincidentally at the height of the rain season.
• Property tax levies are considered delinquent after July 31st.

Property owners are allowed the period beginning January 1 to June 31 to clear property tax obligations with the Ministry of Finance without incurring penalties.

After this period, the property owner is subject to a variety of penalties including an extra 10% delinquent tax rate on the propertys value, and extending to a tax court order to place a lock to prevent access to the property for tax delinquency.

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Required Documents

• Identification documents for the owner
• Proof of nationality of owner
• Payment receipts

Office Locations & Contacts

Bureau of Internal Revenue (Real Estate Tax Division)

Ministry of Finance Department of Revenue

Broad & Mechlin Sts Monrovia, Liberia

Telephone: 026-202-543

Website:http://www.mof.gov.lr/

Ministry of Lands, Mines & Energy

Buzzy Quarter, Capitol Hill

Monrovia, Liberia

Website: http://www.molme.gov.lr/

Ministry of Finance

Broad Street, Monrovia,

Telephone: +231 6243490

Email: [email protected]

Website: http://www.mof.gov.lr

Eligibility

All property owners in Liberia.

Fees

• You have to pay aHut Tax of $200LD (about $4USD)
• Head Tax of $10USD imposed on each individual living in a village or township
• The tax rate on residential dwelling is 0.25% (1/4%) of each propertys assessed value
• The tax rate for commercial property is 0.5% of each propertys assessed value; farm land is taxed at the same rate as commercial property. Vacant land has a sharply higher tax levy at 5% of the lands value

Validity

Valid for a year

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

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Processing Time

The process takes 7 working days

Related Videos

Videos explaining the procedure or to fill the applications. 
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Instructions

Please provide instructions on obtaining the certificate/documents.
e.g. The state office holds birth records since january 1908.

Required Information

1.Full name and address of property owner

2.Nationality of property owner

3.Name and address of owner of property (buyer)

4.Location of property (plot and block number)

5.Property description (size, appearance and features on property)

Need for the Document

Liberian property owners largely ignore tax payments for a variety of reasons including the advent of the civil war, but mainly because enforcement and collections methods are ineffective. Some estimates place the property-tax paying pool of Liberian property owners at roughly 25-35% of all legitimate land owners in urban areas of Liberia. Extrapolate to include rural land owners and the percentage of tax paying land owners droped sharply to about 10-20%, implying that 65-80% of Liberian land owners simply disregard paying or inconsistently pay property related taxes.

Considering that property tax revenue is typically a significant federal revenue source in most developed and emerging nations, one has to ponder the causes and impact of Liberias lackluster property tax system on a nation already straining for funds to revitalize its economy and society.

Is the system to blame? Did the civil war magnify the flaws in the system? Are land stakeholders being unpatriotic or is there a social logic to their reluctance to meet property tax obligations? Are property stakeholders simply unaware of the how, when, and where regarding the property tax system? Is governments failure to provide and maintain infrastructure in Liberia an incentive to refrain from paying taxes since no benefit is derived to the taxpayer? All is left to the Government of the day. Below are the process to register a property Tax in Liberia.

Information which might help

• There are no provisions in Liberian law requiring the public sale, via auction, of property with delinquent taxes.
• Property stakeholders living oversee, through trusted relatives or friends in Liberia, or owners living locally can usually negotiate tax payment with tax officials to avoid simple harassment or a lockout of the property.
• Some absentee stakeholder have resorted to entrusting their estates in Liberia to legal administrator who are responsible for handling all tax, maintenance, and leasing matters for the represented owner.
• Property tax collection remains inconsistent and limited to urban areas.
• A few property tax exemptions exist to ease the burden imposed on the Liberian property stakeholder.
• Stakeholders rebuilding or renovating damaged property, sustained from the civil war or neglect, are eligible for a 5-year property tax exemption

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

http://www.theperspective.org/articles/0914200502.html

http://www.doingbusiness.org/data/exploreeconomies/liberia/paying-taxes

Others

More information which might help people.