I heard depart Tax was going Up 25 to 80 USD,
Did It yet (I hope not)

try this thread http://www.oldbonairetalk.com/cgi-local/bbs/show.cgi?36/252882
WHUDS

at the bottom it tells that it will go into effect on June 1 2006

Thanx So June 1st 75 for non residents, and Residents
(just became one) 20 guilders.

"IF" you typically stay for at least 7 days and rent a vehicle, it's really not that big an increase. For a solo traveller it's actually a bargain.

That former(current) $6.50USD room tax per person adds up pretty quick. Even a non-driving partner will presently spend $45.50 plus the $25 departure tax on a 7 night stay anyway.

It's just something you'll need to remember to keep in your budget for those last day expenses on the way home.

If I arrive on May 20th and depart on June 3rd, will I end up paying both the per person per day tax for the days during May and the new $75 departure tax? That seems like quite a rip!

Ron,

I doubt Bonaire will do 'quite a rip' on you! They realize some accommodation must be made for a proper transition.

For one thing the date of implementation hasn't been set yet. The Bonaire Tourism Office (TCB) newsletter of 6 March had the following explanation of the current status (it includes a table of proposed rates that I can't reformat to appear correct here. I am asking them offline that they post it here if they can):

"The Tourism Corporation Bonaire has been working closely with key partners to obtain the necessary information for implementation and communication. This as part of the communication plan developed by TCB, whereby key partners are informed and consulted on this matter. We are happy with the input and thank our partners for this. While, some details are being finalized, the following provides some key information on the tax to be paid upon departure from the island by "residents" and on the "Island Tax", the tax to be paid by non residents. Together with our overseas offices we will do our utmost, and are ready and well prepared to do so, to support this new tax structure through proper communication! This is essential for the implementation being carried out, and essential for our island as a whole.

The new tax to be paid upon departure by "residents" and the new "Island Tax" in a snapshot:

In late December 2005 the Island Council of Bonaire passed a law changing its tax structure and put in place a new, simplified one.

The new tax structure will divide visitors into two main categories; residents and non-residents. The applicable Island Tax is determined based on where the person was born, their age and then whether the person is traveling within the Netherlands Antilles (N.A.) and Aruba or outside of the N.A. and Aruba after departing Bonaire.

Under the new, simplified tax structure visitors (identified as "non residents") will no longer pay a hotel room tax, car rental tax, nor airport departure tax, but instead will pay just one "Island Tax" of $75.00 per adult and $37.50 for children 12 and under."

I feel you ron, i'm going to be there may 27-june 3rd and wondering the same thing myself. That would really suck.I'd rather pay the 75 bucks myself total if given the option, but to pay both would be just downright dirty... mmmm politics....

So, somebody check my math. If I take my family of 5 (no small children) to Bonaire for one week, I currently pay: $100 departure tax ($20 x 5), plus $210 lodging tax ($6 x 5 x 7 nights), plus $45.50 truck rental tax ($6.50 x 7 days), for a total of $355.50. If I pay only the new flat departure tax, it will cost me $375 ($75 x 5), $19.50 more than I am currently accustomed to paying. Not too bad, I guess. As pointed out above, the longer you stay, the better for you the new fee becomes. I'm guessing that they set it up to be a "break-even" scenario for the standard one week stay. But with departure fees that sizeable, they will have to start accepting plastic.

John, your calculator worked fine.

I am going to protest this new form of taxation. Yes sir, I am again staying 16 days. Gonna get my money's worth, even if I have to dive trying.

"HOW" you will be able to pay could be an issue. Merely my personal opinion, but I would like them to accept plastic or Traveler's Checks or something once this starts. The other taxes were able to handled that way and most tourists are comfortable walking around with $100 in cash.

I don't know how I'd feel wandering about with or needing MANY hundreds of dollars on hand, in my room, the night before I left. I reckon there's always the airport ATM to use.

Tom,
I "had a vision" this may happen.... so I increased my "on island days" Yep, my new dates are May 31-Jun 19. Boy, am I saving money....:-) hee haw....
Let me explain this to my husband....we have to stay longer so we don't git jip'd out of our money.
Little Jimmy B (Jim Beam for all you folks not born in the south) and I will smile at the ocean for you while watch'n the sun go down on the Belmar docks....saving money!!!

Yana, let me know how it goes with the spouse. Mine does not accompany me to Bonaire but, she encourages me to go with Johnny Smack. Also since she believes in getting the most for your money, maybe she will let me get an even better deal by extending my 2007 trip to 21 days. Hey, a boy can dream.

Tom,
Unbelievable ....It's fine with him to stay a few more days!!!
I'm saving more money than Craig on the next trip...He'll only be there for 9 days....I'm feeling sad for him.... maybe I should buy me a few more days in Bon to cheer myself up.....Nope can't do that...I have a job???

Randy,
Most of the time I go back to the airport the day after I arrive in Bonaire and pay the departure tax and lock the tax ticket in the hotel safe along with my passport. I'm with you I don't carry too much cash with me while I'm in Bonaire. Plastic fantastic is my motto.

The plastic option is in the works...

I think the lodging tax is still $6.50, which would be $17.50 more than John's figures, making the difference two dollars. Right?

Tom,
21 days? I wonder if I could do that.

Good catch Seb, just checked several resorts and they are charging $6.50 per day per person lodging tax. On the other hand I also just checked several car rental companies and all of them claimed to charge $3.50 per day government tax.

Hypothetical question: I arrive May 20th. That same day I pay my departure tax of $20 and save the receipt. My room tax is pre-paid as part of a quote from my rental agency, same for car rental tax. If, and a BIG if, the new departure tax took effect on June 1, would the $20 pre-pay be good for departure for one leaving on June 3rd? The $55 difference does not matter that much, but I'm still curious.

So everyone that pre-purchased a full dive package from a resort, which included a truck rental, and lodging tax, just got ripped for another $110.00 dollars......that`s Not good.

Sorry, I left off per couple, it will be higher if more people are in your group.

They are still working on all of this, and yes it is very confusing. I have attended a few meeting and this is what I understand:

1. The $75.00 tax will be initiated, when it is the $6.50 or $5.50 (depending on whether or not you are staying at a Bonhata (Bonaire Hotel and Tourism Association) hotel will disappear, as will the $3.50/per day vehicle rental tax.

2. Very confusing. Right now, it saves abit of money for those staying 7 days or more. I'm still waiting to see how they will address all of this...

I will keep an ear to the ground so to speak...

Liz

Y'know, the way I see this is that it is not a big deal for the average tourist. The average tourist, from my experience, stays a week and rents a truck/car. If you add up the current taxes for room, departure and car rental, the $75 proposed tax is basically a close to or less than what you're paying now. Yes, it's a little harder to swallow psychologically when you have to pay it all at once when leaving, but if Michael is correct about them trying to work in a credit card (as opposed to cash only) option, it's really no big deal.

If they don't do a credit card option, the ATM machine at the airport will be continuously empty!

I kind of like the new system - makes it cheaper for me, as for both my kids I currently pay $20 a piece in departure tax. Under the new plan, I'll only pay $10 each for them (until Krystyana turns 13 in about two and half years). So that's a $20/trip savings... Four trips a year, and I will have saved enough for a dinner out ;-)

Liz mentions that BONHATA properties charge a $6.50/person per night room tax, while non-BONHATA properties charge $5.50 (the actual tax rate). The $1 difference is a private sector "tax" called "TIL" - Tourism Improvement Levy, and is paid to BONHATA to fund its tourism marketing efforts.

Liz, or any other BONHATA member reading this - If the government room tax goes away, will BONHATA member hotels/properties still be charging the $1 per person per night TIL? Or if not, how will BONHATA get income beyond the basic membership fees it charges? Just curious...

Jake

"J", hubby and I were wondering the same thing! Glad I wasn't the only one thinking about that. This whole thing confuses the heck out of me. This will work out for some folks, but for folks who own their own place, and own their own vehicle and pay land taxes, home ins., car ins., I see no exception/reduced rate for that. I am actually getting beat by this as usually, I come at least 4-5 times a year. No, I am not a resident, but do attribute to Bonaire financially, just not a resident and may never as I like to maintain my US citizenship for medical insurance.... I have been trying to find out more particulars or explanations of this new tax, but it certainly will not be fair to quite a few folks who own property on island. For some folks, this will be a good thing, but in the end not good for anyone looking to buy property and not live here year round but making trips back and forth...so may actually hurt business in some way. Just my 2 cents.

Debbie,

You're confusing residency and citizenship. Linda and I are still (and will forever be) U.S. Citizens. Our legal residence is Bonaire however (for which we have to file tax returns and pay taxes on both Bonaire and the U.S. for worldwide personal income).

For the $200-250 you'd save per person in departure tax for 4-5 trips a year by getting Bonaire residency, I suspect you'd pay a heck of a lot more in Bonaire income tax should you become a legal resident here just to get the lower departure tax rate...

Jake

Thanks "J" for that clarification. As you can tell, I am still confused with this. LOL Now, I still think there should be exceptions for those who own on island, even a reduced rate would be good. Still not happy with it in my situation, but good to know that I can become a resident and still maintain my U.S. citizenship! I learned something new there and this is a good thing. By the time I retire, I hope I live long enough for the residency to come through! I know that is a long process in itself.

For me, a sedula holder and resident of Bonaire (who pays taxes in both the US and Bonaire) it is ok but for Maggie who does not have a sedula, this fee will be quite a hardship. For the non resident snow birds who come for 3-6 months a year and have to leave every 90 days, well that will be pricey..but hopefully the powers that be see some logic in this plan and know what they are proposing. Again, as a tourist, I think mentally paying the room and car tax is easier to swallow than the word, "departure tax of 75.00 USD". Mentally it seems like a whole lot more money until you do the math. Then for some, it works out ok...My two cents.

Well I'm going to throw my 2 cents into the mix here. I'm aware of the differences between..1. citizenship & 2.legal residency on the island. However, if someone owns real estate on Bonaire & pays property taxes to the government, they should not be "dinged" on the departure tax as a tourist!
There should be a different category for this type of person; i.e. "the snowbirds".

Even as the poverty stricken Chicago resident that I am, who needs to save his meager pennies for the odd visit each decade, I would like to suggest that we start to take up a collection for the poor wretched souls for must live on Bonaire for MONTHS on end and then (EGADS THE HORROR!!!!)are forced to open their wallets for excessive departure taxes every 90 days.

Oh! The HUMANITY!

lol

Vince,
I totally agree. I own a house and truck on Bonaire. I pay land lease/taxes, truck registration (which is a form of taxation) as well as insurance for both my home and truck. For people like myself I agree that there should be some different category for people in similar situations maybe something in the middle. My wife and I spoke about this yesterday and plan on sending an email letter to TCB. Not sure it will work but can't hurt. If anyone else wants to do the same sometimes there is power in numbers. The email addresses I have are usa@tourismbonaire.com
and info@TourismBonaire.com . If someone else has any additional contacts or suggestions please post.

Gregg

Thinking this even further, I wonder if this will have any negative effect on property sales. Most people buying on Bonaire consider all the costs including the cost of traveling to and from Bonaire. I know that in my case, this tax increase will increase my families annual departure tax expense for 4 or 5 trips a year from $240-$300 to around $1000. Quite a jump and at least one airplane ticket.

There are several categories of departures as I see it:

Residents
Non Resident Property Owners and their family (minors and spouses) members
Tourists

From my understanding this tax change is partly being imposed due to the many illegal rentals out there correct?

Again, I trust the govt. has a plan and has fully explored this new program and will keep us fully informed.

Illegal rentals is definitely one of the reasons posited.

For non-resident property owners out there how much do you actually pay to the Bonaire government in property/car taxes? I know the land lease price for the land my house is on is minimal (I think it was a couple of hundred dollars last year), and the $200/year or so for my car registration is not that bad. If you add it all up, it's not really that much. The departure tax money they will collect from a property owner and spouse (or whole family) for 3-4 trips a year is probably more than all the taxes the property owner pays to the island of Bonaire.

I'm sure if we worked hard, we could come up with a list of a dozen exceptions that we would want TCB to consider, but that becomes completely unmanageable. E.g., what about the Dutch who feel that since Bonaire is a small part of the Dutch Kingdom, they should be treated differently? Or non-residents visiting resident family members?

The reality is that one has to draw the line somewhere, and where the current plans have drawn the line is not unreasonable for the vast majority of people traveling to/from Bonaire.

Bonaire property owners who don't reside on Bonaire are a very small percentage of the overall number of tourists that come to Bonaire - probably too small to make another exception for (never mind, how would one prove this in a way that wouldn't allow someone to abuse the system in the way the current system is abused by illegal apartments). Further, I would bet a fair number Bonaire property owners can afford a $55/person increase in the departure tax (at least if one looks at all those homes being built in Sabadeco :-) ), and thus would consider this increase to be merely yet another "Paradise Tax" - the price that you pay to visit our little slice of paradise.

Jake

Jake,
Don't get me wrong I agree with and support the tax. I am looking at it on a personal level and how much more it is going to cost my family to visit Bonaire. I am not sure how many non-resident property owners there are but I would think it is a fair number although I agree it would represent a small percentage of "tourists". Also, I am not one of the people able to afford a place in Sabadeco and $700 +/- a year increase is still a bit of money for me. As far as proof goes - I suppose your receipt from the tax office might be adequate.

Gregg

(Message edited by Gregg_b on March 10, 2006)

Gregg,

As a Bonaire property owner who also rents out his vacation home, however, you also make money (or at least lose less) by such activity, and I suspect you can deduct the cost of departure tax as a business expense, making your net out of pocket cost less than the full amount.

And the tax receipt might be great for the person who is listed on the receipt, but what about spouses, children, parents, uncles, aunts, cousins, etc. traveling with you? That's an area ripe for abuse...

Jake

Well Greg, at least you don't have to pay the 5% tax anymore as a property owner...not sure what other paperwork you have tho...

Jake,

Agreed, calculating it as a tax expense it has less of an impact.

As far as the tax receipt for ID purposes that would be where I would find a line to draw. I don't have mine in front of me but I think both my name & my wife's name are on it. I would cut it off at owner, spouse and any child under 18 with the same last name traveling at the same time.

Oh well, guess I'll have to start saving a little extra for our trips. Got some part time work available?

Gregg

Well in reading the above responses I can see everyone has a different take on this. I'm really not surprised and that's well & fine. But nothing said above dissuades me from my belief that the property owner (deed holder) who pays taxes, water bills, electric bills, tel bills, patronizes the local establishments which tourist avoid , i.e. hardware stores, appliance stores, auto repair etc. several times per year, should in fact be treated differently regarding departure taxes then the tourist who arrives once a year or "each decade" for a well deserved vacation.

Now in general is the tax a good or bad idea? I think it's a good idea in that it catches the "underground economy" which IMHO is it's main function. It's axiomatic, the higher the rate of taxation; the deeper the underground economy will be.

**Gregg** I did send e mail to the URL's you listed & requested clarification. Yes there is power in numbers & I'd suggest that other property owners who are not "legal residents" do likewise.
I learned a long time ago, "the squeaky wheel gets the oil". If you don't represent your own interests, others who do not share your position will certainly not do it for you.

Vince,

I agree totally. I spend thousands of dollars in those local establishments you described; as well as, pay a maid, caretaker, landscaper, handyman etc. etc. We dive practically everyday when we are on Bonaire, my son goes to Sea & Discover, we ate out 22 out of 23 days on our last visit and we went windsurfing. So I think I contribute more to the economy of Bonaire than do most tourists and probably more than many residents. I also sent my emails off today. Hope others do as well.

Gregg

Don't IRS rules forbid using a rental property more than two weeks a year by the owner? Used to be that way, just wondering...

Seb..That rule referred to an investment property & it was 2 weeks MAXIMUM PERSONAL USE by the owner (for vacation) to have the property characterized as an investmt property.. As you may or may not know, you can depreciate investment property on your income tax returns (of course you have a recapture calculation when the property is eventually sold).

At any rate, if you visited your condo or property for "business use", i.e. attend owner's meeting, performed work on the property like painting etc,maintenance this is NOT considered "personal use" but business related..Suffice it to say, when I owned on St Croix (in the 80's), ALL my trips were business related.

Hey, on my last trip to Bonaire, we put a new porch over our entryway, installed a new a/c in our guest bedroom, installed a clothesline on side of house, did some painting and some new things inside as well, so that is "business" to me. I could go on, but not many owners I know who own on Bonaire can go to their home and not do something to repair it when there. For some, it is the only time you can do such repairs. There were a lot of owners at our community at the time I was there and there were all kinds of repair, improvements going on. Guess we are totally off topic now, though.

As I stated above, I did send off emails to TCB and received the following response:

Dear Sir,

Thank you for your email and suggestions. Your request for identification
of a third category within the new structure has been forwarded to the
competent party.

At this point the island is working on this matter. The tax, to be called
the "Island" tax, has not gone into effect as yet and all parties will be
informed properly.

I appreciate your comments on proper communication, and indeed agree with
you that this is vital. All points brought forward are present in the plan
devised to inform the public as best as possible.

All information will be posted on infobonaire.com also, as soon as finalized.

Kindest regards,

Ronella Croes
Tourism Corporation Bonaire

As I said earlier, I do see the need and agree with the change in the tax collection. My point to the matter is that I do not think that the change is meant to really INCREASE the tax substantially for any tourists. I believe it is, as stated, to catch illegal rentals and increase the collection efficiency. As the new tax structure is explained for the average non-property owning tourist the net tax paid will be the same and even possibly less under the new way of collection. BUT for property owning "tourists" and in some cases also vehicle owning tourists, the tax will nearly be quadrupled. I don't believe that was the intent.

Gregg

Gregg..I got basically the same response from Ronella. Now is the time to get fellow property owners to send their e mail before the official plans come out!

I hope this doesn't turn out like the Bahamas...here a tax, there a tax, everywhere a tax, tax, tax.

I think Bonaire has loooooggggggg way to go before it catches up to the US in taxing its citizens!!!

(Message edited by gmichael on March 29, 2006)

(Message edited by gmichael on March 29, 2006)

I think the owners of property should be given Resident status, you renew it every 11 months
good for a year. Then you pay the smaller resident fee.

Want to talk about taxes, move to New Jersey.
Our esteemed new govenor as a whole bunch of new ones planned.. Of course we have the highest property taxes of any state in the union. But, that's not enough.And he campaigned on "no new taxes"..
Of course a wise man once observed, in a democracy the people get the government they deserve!