Condominium fee replaces
boarding, time share taxes
PHILIPSBURG--The draft 2008 budget shows a substantial increase in Turnover Tax (TOT) revenues, while the wage tax revenues will also continue to increase steadily. Also the condominium fee, which will replace the boarding and time share taxes, will be introduced during the course of next year.
The lion’s share of government’s budgeted revenue of NAf. 315 million for 2008 will come via wage tax.
NAf. 116 million has been projected in wage tax revenue for 2008. Compared to 2007, this is an increase of NAf. 8 million. The increase has to do with better collection of the wage tax.
Profit tax revenues have been calculated at NAf. 27 million. With the proposed increase of the TOT, the projected revenues from the TOT compared to 2007 will more than double.
The TOT revenues will be based during the first six months of 2008 on the current three per cent. The Island Government has initiated negotiations with the Central Government to increase the TOT by one per cent. In 2007, the TOT revenues were budgeted at NAf. 23 million, while the expected revenue for 2008 will be NAf. 53.6 million.
The island taxes will also go up by NAf. 10 million compared to 2007. The island taxes are the condominium fee to be introduced in 2008 (NAf. 3 million), the GEBE concession fee (NAf. 4 million), the harbour concession fee (NAf. 5.2 million), increased director’s licence fee (NAf. 3.5 million) and more efficient collection of taxes (NAf. 3.3 million).
The total island taxes amount to NAf. 19 million in 2008, of which NAf. 9 million will be allocated to pay for new policies of 2007. The road tax will not be increased for the owners of the estimated 21,000 cars on St. Maarten.
The draft legislation for the condominium fee is being worked on and will replace the existing boarding and timeshare taxes. The “ordinance stay-over tax” will bring in an estimated NAf. 3 million in 2008, but by 2013 this should have increased to NAf. 10.5 million.
The GEBE concession fee of NAf. 4 million is based on 17,000 connections on the island generating NAf. 20 per month each. The harbour concession contribution will be NAf. 5.2 million in 2008, of which NAf. 4.2 million will be used for the beautification of Philipsburg.
