Q&A: Property tax

You may even be able to pay in cash through some service providers.

And what about any outstanding bills for the household charge?

The Revenue is not giving up on that. It will cap the 2012 charge at €130 if paid by the end of next April. After that

the bill tots up again. From July 1st, the unpaid household charge will rise to €200 and will be added to the local property tax bill.

But are we not getting rid of the household charge?

Yes, the household charge will not apply next year because it will be replaced by this new local property tax.

And what about the non-principal private residence (NPPR) charge on second homes?

This will apply in 2013 but not thereafter.

Is anyone exempt from the property tax?

People buying new, or previously unused properties between now and the end of 2016 will be exempt until the end of 2016. First-time buyers of second-hand property will also be exempt, as will houses in ghost estates, mobile homes and properties in other very limited cases.

Say I decide not to pay, what happens?

The Revenue is responsible for compliance and the proposals envisage it seeking to deduct unpaid tax at source from non-compliant taxpayers. For self-employed people, failure to pay will see the Revenue refusing to issue a tax clearance certificate.

If tax is still unpaid, a charge will be put on the property, ensuring it cannot be sold or transferred to new owners without being settled.

OK, OK . . . but what did I hear about deferring the charge?

There will be provision for voluntary deferral for owner-occupiers unable to pay. It will apply only where gross income does not exceed €15,000 for a single person

and €25,000 for a couple. People with income within €10,000 of these limits will be able to defer part of the bill. Those in mortgage distress may also be eligible for deferral. Interest on deferred sums will be at 4 per cent annually, but not compounded. The deferred amount will be a charge on the property payable ahead of any sale or transfer.

You say the charge is 0.18 per cent now. They’re going to increase that every budget, aren’t they?

They say not. The Minister has promised not to increase the national rate during the lifetime of this Government. However, from 2015, local authorities will be allowed to adjust this “national rate” by up to 15 per cent up or, more unlikely, down.

€1m+

Properties valued at over €1 million will be assessed at the actual value (no banding will apply) at 0.18 per cent on the first €1 million in value and 0.25 per cent on the portion of the value above €1 million e.g. a property valued at €1.1 million would incur tax of €1,800 on the first €1 million and €250 on the next €100,000, giving a total of €2,050