Local Property Tax conundrum may be more difficult than the Budget

Local Property Tax conundrum may be more difficult than the Budget

While many people will hope to have a few euro extra in their pockets after Budget 2018 on Tuesday, the real battle to cut down on household costs could be a few weeks away yet.

That’s because a comprehensive review of the Local Property Tax is not due to commence until after Tuesday’s Budget.

At present, the LPT is levied based on the 2013 valuation of homes. At this time prices were close to their lowest point after the economic crash but have rebounded significantly since then.

With the six-year freeze on valuations due to end in 2019, that could mean that households face significantly higher bills for the LPT when it comes up for assessment in around 12 months time.

Prices in Dublin, for example, have climbed more than 60% from their lowest point.

Even a slight increase in price could result in increased payments of up to €135 per household while most will face their bills going up by at least €90. That could be more if house values move through more than one valuation band which, after the first €100,000, are calculated in €50,000 amounts.

A house valued at €230,000 in 2013 was liable to LPT of €405 per annum. If that price has doubled in the interim, the household will be liable for a hike to €855 in 2019.

Outside of Leinster and the major urban areas such as Cork, prices haven’t risen as dramatically but getting a level of fairness across the board will be difficult.

It is expected that Minister for Finance Paschal Donohoe will signal an intention to review the tax in the Budget with the matter to be debated between then and Christmas.

The Government are understood to be anxious to avoid a sudden dramatic hike in the LPT and prefer progressive base-widening. As a result changes to the tax can be expected.

There is unlikely to be a solution that suits everyone though, making it an even bigger challenge for the Government than next Tuesday’s Budget will be.

What are your thoughts on the matter?

  • What changes would you like to see?
  • Could you afford an increase in the Local Property Tax rate you pay?
  • Is there a fairer way for people to pay a property tax?

Have your say below…

There are 13 comments for this article
  1. Platinum Accounting at 1:59 pm

    The extra charges of a government on the purchasing of property in the form of general country tax can be eliminate easily with in a seven days according to the rules and regulations of a government,If you write an application with the authentic reasons for a elimination of property tax and also attached a legal documents of a property tax pairs after that submitted in the government office by the tax layers which is helpful for you to approved the claim of your property tax in the seven days without any allegations of a government on the application of your property tax ,Remember don’t write any irreverent reasons in the applications of property tax you want to submit in the office of government and also don’t attached any illegal or extra document of property which increase the chances to refuse or neglect your claim application ,So keep it in your mind all the instructions and requirements given to you by the tax layer after concerning this kind of matter according to the current policy of government .

  2. STEPHEN at 12:25 am

    My Property sees no benefits from this unjust tax. Moreover, I paid thousands in stamp duty and no return to my property. There is no ability to pay clause either. Those how advocate paying this tax are usually well off, and in any event the tax would make little impact on their financial position. Assessment on the square measurement of a property as opposed to property rated bands would not change the situation. Some politician in a future budget would propose a massive increase in the square measurement charge. The property tax was introduced by central government in order to remove subsidies to local authorities and therefore abrogate their responsibilities once again.Scrap the property Tax it’s unjust and expensive to collect.

  3. David at 6:12 pm

    I’m living in a new build. Should I pay LPT based on it’s value now or its likely value 4 years ago?

    Should I pay more than someone who’s house is worth more than mine?
    What is new valuations are delayed and I pay excess for those extra years?

    Ireland is a farcical little country really.

  4. Maria at 2:20 pm

    If we HAVE to pay LPT then it should be charged on the Sq Mt
    of the property and Definitely not the Value. This is completely unfair and unjust. Most people living in the main cities have much smaller properties with very high values, compared to the countryside properties which generally have much larger sq mt. Why should the main cities , pay the burden of the LPT ?
    What exactly do we get for this – Nothing !!!!
    What exactly has this tax been used for ?? –
    Gov wage Increases perhaps !!!!!!!!
    There is Still no Gov / Civil servant accountability for how our taxes are being misused and squandered for the most part.

  5. anon at 1:36 pm

    I am property-rich and cash-poor,VERY poor! I couldn’t sell my house when I was able to move and now I am stuck here,at least until my son finishes his Leaving Cert next year. I don’t have much money to maintain and repair my house and I find it a struggle so, though I badly want to move and down-size, I am not sure I will be able to sell this house. In the light of all this, NO,I can’t afford to pay any more!!!
    I agree that tenants should pay the LPT instead of the Land lords. The fact that land lords have to pay it means small-scale private land lords are discouraged and we will see more and more of these vulture funds buying up Irish property.I rented my house out to go to England for my other half to find work. We had to pay the same money as I was charging for my 3-bed detatched bungalow that I had just renovated for a poky,mould-filled 2-bed terrace in a run-down area! The house was owned by a property company who couldn’t care less about the house nor the tenants and the admin was left to a lettings agent who are notorious in England for treating tenants like dirt. We came back to find my tenants had damaged my property and even stolen some of it- they brought my belongings back but the PRTB would do nothing for me and the Irish Landlords Association sympathised but told me to just put it down to experience.I will NEVER let this place again!!!! If small scale land lords who rent out decent property at VERY reasonable rents are treated like that, no wonder the rental market is so toxic! If tenants had to pay the LPT and small land lords were supported,then it could help keep rents low and improve the quality of rental houses as land lords would be more able to afford to maintain them! If the private rental sector goes like it is in England, we will only see even more homelessness, poverty and misery and not just for tenants but for small land lords as well! What a cheek this government has demanding more money again when there is nothing provided for it.Like having to pay a TV License when you can’t even access Irish TV, one is being forced to pay for a service one does not get!!!

  6. anthony616 at 1:07 pm

    The charge should be levied on a square meterage basis to avoid this upcoming problem. A multiple factor could then be applied geographically relating to the amount of actual public services available (i.e urban pays more than rural). That would be fair, equitable and transparent….Of course we could opt for pure socialism where we rob the rich (while they last) and then implode like Venezuela.

    • Brian Buckley at 1:12 pm

      Agree about the socialism – this country has way too many ‘fairness’ advocates – i.e. only fair if someone else pays to carry my lazy ass around – hello Catholic Church Stalinists and Public Servant jobs-worth Unions.

  7. Brian Buckley at 12:53 pm

    The best solution is to apply LPT in the way it is supposed to be applied – ‘to fund local services’ – so why do only property owners pay it – I lived in the UK for 10 years and there ‘Council Tax’ is levied on the occupier (i.e. the person/people receiving the ‘local services’). If everyone paid LPT there would be plenty of room to reduce it.

    • Brian Buckley at 12:58 pm

      And while I’m at it here’s another thing … Owners of apartments and developments with private grounds have to pay maintenance for the development so what ‘local services’ are they receiving for the additional LPT charge – there should at least be a reduction for people paying maintenance of grounds – OR – a rule where the local authority is compelled to pay for maintenance out of those folk’s LPT!

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