Myers Fletcher & Gordon (MF&G) Attorney Alicia Hussey said this trend highlights a major challenge in tackling the bigger problem of abandonment and neglect of property, and the tainting and stigmatization of certain areas."
The Urban Renewal (Tax Relief) Act (the Act) was established to alleviate the problem, said Hussey, speaking at a recent real estate development seminar hosted by MF&G and the Jamaica Chamber of Commerce.
"In order to facilitate development within areas suffering from blight, urban decay and dilapidation, the Government has decided to provide certain incentives by way of tax relief," said Hussey. "The main objective of these incentives is the redevelopment and restoration of derelict and decaying urban areas in order to refurbish and improve buildings and structures for human habilitation and economic activity and create a more suitable social environment."
There are four Special Development Areas (SDA) designated by the Government which include areas in Downtown Kingston, Port Royal , Spanish Town and Montego Bay. Hussy said some of the incentives for real estate development in these areas are the issue of Urban Renewal Bonds to mobilise the funds required to finance urban renewal projects with an exemption from stamp duty and transfer tax upon their issue and transfer; the relief from income tax on interest payable to any investor in Urban Renewal Bonds; investment tax credit to developers; tax relieve on rental income; and transfer tax exemption on the transfer of improved property.
Read more: http://www.jamaicaobserver.com/business/Few-takers-for-Urban-Area-incentives---Attorney_11551013#ixzz1w3n98Q00
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