Increase in Local Property Tax likely from 2020

Increase in Local Property Tax likely from 2020

Homeowners are likely to see the amount they pay towards the Local Property Tax rise in 2020 but Finance Minister Paschal Donohoe says they will be “affordable”.

He said any alteration to the tax levied on people will be “moderate and well understood”.

This represents the first indication that increases to how much homeowners pay in local property tax are likely following the introduction of a new system from 2020.

Dublin TDs have reacted with concern to any potential increase in LPT bills saying their constituents are already paying over the odds under the current system.

Fears of massive spikes in tax bills have been fuelled by continued increases in house prices in 2013, when the tax was introduced, and the property market is showing no signs of cooling, with prices advancing 13% year-on-year in February.

Prices in Dublin have risen by over 90% since the low point of the crash, and are 23% off their 2007 peak value.

Mr Donohoe, speaking this weekend, revealed that while changes are likely, they will be “well understood” before they are introduced.

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