City Council ordered by High Court to reverse 0.5% increase in cost for Certificate of Compliance

By way of a Notice in 2019, the City Council informed the public that the cost for a Certificate of Compliance will be increased by 0.5% of the current market valuation of the property.

City Council ordered by High Court to reverse 0.5% increase in cost for Certificate of Compliance

The High Court has ruled that the Georgetown Mayor and City Council acted outside of its authority when it introduced a 0.5% increase in the cost for a Certificate of Compliance back in 2019.

By way of a Notice in 2019, the City Council informed the public that the cost for a Certificate of Compliance will be increased by 0.5% of the current market valuation of the property.

The Guyana Bar Association opposed the decision and dispatched a letter to the City Council requesting reasons for the decision of the Council.

The Association claimed it was ignored and decided to move to the Courts to quash City Hall’s decision which took effect July 1, 2019.

The Bar Association also sought a declaration that the decision of City Hall is contrary to law and the policy of Section 16A of the Deeds Registry Act, Chapter 5:01 as well as an order that the Council had no jurisdiction to make such a decision.

The City Council relied on the Municipal and District Council Act as the statutory basis which authorizes the Council “to prescribe fees and charges”.

The Council also argued that there is nothing in the legislation which prohibits the Council from setting fees and charges on a percentage basis as opposed to a flat fee.

They contended that the new fee was not a tax but a levy by a public body.

In analyzing the case, the Justice Gino Persaud explained that the City Council is a creature of statute and it derives its jurisdiction and power from statute and it can only exercise the powers granted to it within the four corners of the Act.

“The MCC has no statutory power to make the decision it did to raise the fee for a certificate of compliance and to request the additional documents. It had no power or business in making the purported policy decision to levy such a charge. It also had no implied power to do it. The decision was beyond their powers and ultra vires and void,” the Judge ruled.

He further said in his ruling that the figure of 0.5% of the current market valuation of the property to be transferred was not explained in any way at all.

“It is hereby ordered and declared that the decision of the Respondent published to the general public by way of Notice on 20 June, 2019 was unlawful and ultra vires the Municipal and District Councils Act, Cap. 28:01 and Section 16A of the Deeds Registry, Act, Chapter 5:01 and is consequently null and void,” the High Court judge ruled.

An order was also granted for the City to reverse its decision.

The Guyana Bar Association has welcomed the decision of the Court.

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