The government continues to give contradictory signals about a proposed tax plan.

The proposal is not yet public but administration officials are floating balloons to see the public reaction, and they also are meeting with lawmakers.

Two proposals might be problems for expats. The government says it plans to levy a $200 tax on corporations in addition to a small tax each corporation has to pay every year.

Properties, automobiles and even cellular telephones are held in corporations here. Forming a corporation is about the only way an expat who does not have residency can get a cellular telephone.

Consequently, there are many thousands of corporations with assets valued much lower than the $200 proposed as a tax.

Rodrigo Arias Sánchez, the president’s brother, also continues to suggest a tax on homes with higher value. The orginal proposal was to assess a small tax on homes valued at more than 75 million colons or about $145,000. The income generated by the tax would be used to clear slums.

Quickly this idea ran into trouble. Will the tax be on commercial properties as well as homes? How about rental homes? How about a farm home worth millions because of the surrounding land? How about common areas in condo projects.

These questions will not be answered firmly until the final draft of the proposal is passed by the legislature, if then.

One important aspect of this housing tax is a requirement that the true value be reported. In addition to imposing the tax burden fairly, corrrect reporting of property values will help create a data base for appraisals in the country, something that is now lacking.

Another concern by some lawmakers is would a special tax only on upscale homes be constitutional. And would the final draft make allowances for the ever-decreasing value of the colon?