The details of the new Local Property Tax have been announced in the 2013 Budget
Our original assumption that it will be a self assessed tax based on the market value of the property was correct . More about Self Asessment of Property Tax Here
The tax rate is based on 0.18% for the first 1 million of value and 0.25% on the portion of the value over 1 Million. The minimum tax is €90 a year on houses less than €100,000
Properties valued over €1m will be assessed at the actual value (no banding will apply) at €1800 plus 0.25% of the portion of the value above €1m
Property Tax Calculator
See Here – How Much Property Tax Will You Have to Pay ?
The Property Tax is due to take effect from July 2013 – so only 6 months tax will be charged in 2013. The Household charge will be abolished from Jan 2013 and the NPPR is stopping in 2014.
Property Tax exemptions will be the same as those for the Household Charge . (Tenants will not be liable). More about Property Tax Exemptions Here
Homeowners with low income can apply for a deferral. This means the tax will still be charged – but payment can be delayed – even until after death.
A voluntary deferral will be available to those whose gross income limits do not exceed €15,000 for a single person and €25,000 for a couple.
A deferral option will also be available up to the end of 2017 where gross income less 80 per cent of mortgage interest falls below €15,000 for single people and €25,000 for a couple.
The local property tax will eventually have to be paid when the house is sold or on death of the owner. A 4% annual interest rate on the tax will be charged on any deferred amounts .
The Revenue Commissioners will collect the property tax and will also take over the collection of Household Charge arrears.
They will struggle to track down owners if they are relying on the Household Charge database – but it is all they have.
Revenue is expected to start collection of the Property Tax from July 2013 and will offer the options of paying it in annually , in instalments or having it deducted from wages.
See our list of Answers About Property Tax for more useful information.
Not long after the introduction of this Property Tax – homeowners will then be asked to pay Water Charges (from early 2014) . This could add as much as another €500 to owners and tenants annual outgoings . More about Water Charges.
It is not yet clear if there will be a dedicated Property Tax web site such as PropertyTax.ie
(The PropertyTax.ie domain is owned by Halifax Insurance Ireland Limited – but they are not using it. I wonder how much they will want to sell it for ? )