Payroll Tax Amendment (No. 2) Act 2024

What this bill does

This bill creates a new simplified tax system for minibus operators in Bermuda. Instead of paying the regular payroll tax rates, minibus operators will pay a fixed annual fee based on how many seats their minibus has. The bill also reduces the annual payroll tax for taxi drivers from $1,000 to $600.

If passed (voted YES)

• Minibus operators will pay a flat annual tax of $750 (up to 15 seats), $1,000 (16-24 seats), or $1,500 (25+ seats) instead of regular payroll tax calculations
• This tax must be paid before getting their vehicle license from Transport Control Department, starting April 1, 2025
• Taxi drivers will pay $400 less per year in payroll tax (reduced from $1,000 to $600), effective October 1, 2025

If rejected (voted NO)

• Minibus operators will continue paying payroll tax under the current standard employer/employee rate system
• Taxi drivers will continue paying $1,000 per year in payroll tax
• No simplified flat-rate tax system will be created for public transport operators

Who it affects

This bill primarily affects people who operate minibus services and taxi drivers in Bermuda. It aims to simplify the tax process for small public transportation businesses.