Minister for Finance Paschal Donohoe has announced a review of the local property tax, the aim of which he said was to provide some stability on future liabilities.
The review will commence next month and look in particular at the ‘impact of property price developments’.
At the moment, the tax is calculated on 2013 market values, but property prices have increased substantially since then, particularly in Dublin.
There are concerns that the liability could increase massively in some parts of the country after planned revaluations next year.
“Even though it would be 2020 before LPT liabilities would be affected by any property revaluations, it is important that the Government is able to make its position clear in relation to LPT in a timely way so that households will be aware of its plans for the tax in advance of the November 2019 revaluation date and the associated 2020 and beyond LPT liabilities,” the Minister said.
“The current review of the LPT will be informed by the principle of achieving relative stability in the LPT payments of those liable for the tax and provide clear direction on the likely payments faced by households in 2020.”
The review is due to be concluded by the end of August at which point the group will provide a number of policy choices.