The new Local Property Tax will affect all home owners in Ireland from July 2013. You can see here How Much The Property Tax Will Be
As with the Household Charge – everyone will be looking for exemptions or waivers from the Property Tax .
Firstly – it is only a tax on owners. Tenants will not be liable for the Local Property Tax – (of course it may result in increased rents)
Some properties will be exempt – see the details of Property Tax Exemptions here – but there are no waivers for people on low income or mortgage interest supplement.
There will be the option for some people on low incomes to DEFER the payment of the Property Tax. That is to delay it – but not to avoid it.
Owner Occupiers (Not Landlords) will be able to apply for deferral of 100% of the tax in the following situations:-
• Where their annual gross income does not exceed €15,000 (single) and €25,000 (couple)
• Or where gross income less 80% of mortgage interest falls below €15,000/€25,000 a deferral option will be available only to the end of 2017 (when mortgage interest relief also ends).
Deferral of up to 50% of the LPT will also be possible where the annual gross income or adjusted income after mortgage interest is below €25,000 (single) or €35,000(couple) .
Interest will be charged on deferred amounts at a rate of 4% per annum and the deferred amount, including interest, will be a charge on the property.
Deferred property taxes and interest will have to be discharged on the sale/transfer of the property.