It had to come sooner or later. For years there have been complaints that especially foreign vacation home owners rent out their property and do not pay taxes on that income, which is considered unfair to law-biding local citizens.

Talk about introducing a so-called condo tax has been going on for years, but issues regarding the exact definition of a condo as opposed to a regular home and possible legal implications thereof have prevented such from becoming a reality so far. It also was not considered the best moment in connection with the real estate crisis particularly in the US from where many of the island's potential clients come.

Then again, there really never will be a good time for taxes and the treasury was missing out on a considerable part of the economy. So, fiscal authorities have been sending out summonses and assessments for perceived rental income.

However, the Real Estate Association of St. Maarten RAM is concerned about the methods being used by the Tax Department, which believes that real estate agents have the obligation to inform their clients of the duty to pay tax on income from rentals (see related article). RAM and the department now have agreed to work closely together on related matters.

It also must be said that there are real estate agents who do make their clients report rental income and pay taxes on it, but that's certainly not the case for all and many condo owners don't even use an agency to rent out their property. An information campaign to increase awareness in this regard is undoubtedly a good idea.

The argument that many condo owners are constant contributors to the local economy does not remove the need for them to pay their fair share of taxes on income generated in St. Maarten. That some use the rent money to offset condo fees and the like is understandable, but the net income after deducting such is still taxable under the law, like it or not.