Residential real estate includes houses, condominiums, and townhouses. The structures may be single or multi-family dwellings and may be owner-occupied, but not rented for income.
Property value X Tax = Amount to be paid
e.g 50000 x 0.0025 = $125
A commercial and industrial real estate building is any structure in which a business activity is pursued. They include office buildings, warehouses, and retail buildings (e.g. convenience stores, ‘big box’ stores, and shopping centers).
Property value X Tax = Amount to be paid
e.g 50000 x 1.5% = $700
Land that is vacant within the city will attract taxes and individuals owning said properties have to take note.
Property value X Tax = Amount to be paid
Relates to farmland that is within the urban areas – within the city.
Property value X Tax = Amount to be paid
e.g 50000 x 0.0033 = $165
This relates to farms that are in the countryside and outside urban areas.
Property value X Tax = Amount to be paid
e.g 50000 x 0.0025 = $125
Property value X Tax = Amount to be paid
Property value X Tax = Amount to be paid
e.g 50000 x 0.0025 = $125
Property value X Tax = Amount to be paid
Property value X Tax = Amount to be paid
e.g 50000 x 0.0025 = $125
Self-assessment rule: Each property owner is required to make self-assessment and pay real property tax following the guidance below:
Step 1: Measure the size of your property or take property size from ownership certificate for:
Step 2: Value land and building separately using either of the following methods:
Valuation Method one: Use the property value provided by assessors approved by the LRA and put in the return form as follows:
Owners with high-end commercial properties with total areas of more than 2,000 square feet are required to hire an approved architectural/engineering firm to conduct the valuation. The firm should provide a notarized appraisal booklet with the property value (such value is valid for five (5) years), and put this value in the return form and pay the tax accordingly.
Valuation Method two: Taxpayers, including those having low-end commercial properties (low-end commercial properties with total areas less than 2000 square feet), should do own valuation if assessors value is not available:
Step 3: Apply appropriate tax rate (0.25% for residential property or 1.5% for an income-producing property) on the total estimated market value of land and building and determine the amount of tax as shown in the following example:
The formula for determining tax amount = DECLARED MARKET VALUE * TAX RATE
Example: Declared total value of both land and building/structure for residential property = US$ 10,000.00
Tax amount = 10,000.00 * 0.25% (.0025) = US$ 25.00 for one year
If payment is for more than one year, for example, two (2) years, Tax Amount = US$ 25 times two = US$50.
Step 4: Deposit the tax amount to a commercial bank. After that, submit the return to LRA via email at info@lra.gov.lr or to any office of the LRA.
Optionally, go to LRA Head Office or any nearby tax office and make cash payments for amounts below US$
250.00. For funds above US$ 250.00, obtain a manager’s check for the tax amount from any commercial bank and make payment to LRA Head Office or any nearby tax office.
TIN: Property owners who have no Taxpayer Identification Number (TIN) must obtain TIN from LRA offices to make payment.
Return form: Download return or declaration form from the LRA website or get a hard copy from any of the LRA offices
Disclaimer: The LRA maintains its rights to revise and impose an additional tax on properties valued by the taxpayer applying valuation method two (2) above in case of understatement of value by the property owner.
