The Finance Bill 2013 was published today – and some of the bill relates to the Property Tax.
Under the initial rules – Local Authorities were liable for the property tax on houses they own and rent out to tenants. A change included in the new Finance Bill means that all local authority and voluntary housing association homes will be valued at under €100,000, the lowest of the bands. This means they will be charged property tax of €45 in 2013 and €90 in following years.
This will remove the need for local authorities to provide valuations on all their properties.
Local authorities will not have to pay the property tax until 1st Jan 2014 – but the payments for owner occupiers will still need to be made in July 2013 . This means that local authority tenants will not see any rent rises because of property tax in 2013. In 2014 it is expected that local authority rents will be increased because of property tax – but at a rate of €90 a year – the weekly increase will be no less than €2
Other new exemptions were added – but they will only apply to small numbers of homes.
Pyrite – : A temporary exemption will be given for at least 3 years to residential properties that have been affected by a significant level of pyrite-induced damage. ( regulations to follow to determine how it will be established if a property has been affected by a significant level of pyrite-induced damage.)
Homes that are purchased or adapted for use by a ” permanently and totally incapacitated” person will be exempt. This exmption will only apply where an award has been made by the Injuries Assessment Board or a court or where a trust has been established specifically for the benefit of the individual. In the case of adaptations to a property, the exemption will not apply unless the cost of the adaptations exceeds 25% of the market value of the property before it is adapted.
Finally – any residential properties used by a charitable body for recreational activities connected with its charitable purpose. (I.e. Scout/Guide accommodation) will be exempt.
Read more about Property Tax Ireland here
I purchased my council house several yrs ago and have adapted it for my wife who is permanently disabled am i exempt form the property tax if not do i value my house the same as the local authorities as it is in a council estate with council tennents..
Tony – there are exemptions for some houses adapted for disabled people – see here for details. https://www.moneyguideireland.com/property-tax-exemptions-on-homes-adapted-for-disabled.html
Regarding the valuation – Revenue say to provide what you think is the market value for the house based on sales of similar houses in the area . If there have been no sales because they are all rented – then it is hard to estimate value. If you think it is worth under 100,000 then you just enter that band on the form. It will be difficult for Revenue to argue against that unless similar houses nearby have recently sold for more.