Revenue takes conservative line on property valuations in tax reckoner
10/03/2013 The new website by the revenue which will indicate property values on which the new property tax will be based. Property owners can check what property values are in their area on www.revenue.ie. valuations will be based on a variety of sources including the recently established property price register, the An Post geodirectory and stamp duty data.Photo: Gareth Chaney Collins
The new website by Revenue went live today. Photograph: Gareth Chaney Collins
22 Newtown Park Avenue Blackrock Co. Dublin a 3 bedroom semi-detached family home (approx 1400 sq.ft / 130 sqm) for sale via Savills . Pic for piece on property tax by Tim O'Brien
Property Spl..... Blackrock village in Dublin. PHOTOGRAPH - FRANK MILLER 17.2.00 ref 00/2/209
30/05/2011 NEWS see copy by Tim O'Brien The harbour at Greystones, Co. Wicklow, with hoarding and barriers seperating it from the town.Photograph: Eric Luke / THE IRISH TIMES
Photograph: Cyril Byrne March13th-09
The Revenue has taken a conservative view of property prices across the State for the purposes of assessing what homeowners should pay in property tax.
According to valuations on the newly unveiled property tax calculator on Revenue’s website, a semi-detached house at Newtownpark Avenue in Blackrock, south Co Dublin, would fit somewhere in a price band of between ¤300,001-¤350,000, about half what such a house might have fetched during the boom years.
As such, the amount of local property tax to be paid would be ¤585 in a full year, or ¤292 for the half year over which the Revenue Commissioners are planning to introduce the charge in 2013.
However leading property websites are offering such a house at Newtownpark Avenue for an asking price of ¤460,000. If achieved, this price would lead to a higher local property tax liability of ¤855 in a full year.
In Greystones, Co Wicklow, a detached house built before 2000 is considered to be worth between ¤250,001 and ¤300,000, incurring a tax liability of ¤495 in a full year.
Moving west to Knockvicar on the Leitrim-Roscommon border near Boyle, a detached house is deemed to be worth between ¤100,000 and ¤150,000, incurring a liability of ¤225 a year.
Grouped into bands
In general, houses are grouped into bands, with the tax rate set at the mid-point of the band. Therefore a house in Blackrock, Dublin, which is valued at ¤300,001 will be liable for the same tax as a house valued at ¤350,000. However it is slightly different for houses worth more than ¤1 million.
Detached houses on Shrewsbury Road in Dublin 4 have all been valued at in excess of ¤1 million, and the band system disappears for homes of this value, with owners paying a flat rate of 0.18 per cent, a minimum of ¤1,800 a year.
There are also some anomalies though.
In rural Castlebar in Taoiseach Enda Kenny’s constituency if a home were described as a bungalow, it would attract a value of ¤100,000- ¤150,000 and a taxation amount of ¤225 for a full year.
However, should a home there be classified as “detached” , the value would rise to somewhere between ¤150,001 and ¤200,000, giving a potential tax liability of ¤315 in a full year.
This does not hold true in all areas and it does not always prove beneficial to describe a house as a bungalow as opposed to detached.
Not an exact science
The Revenue Commissioners have acknowledged the calculator is not an exact science and it is possible to appeal a valuation, or indeed to inform Revenue if a home has been undervalued. Under Revenue powers, penalties and interest can be applied where a property’s value has been discovered to be consistently underplayed.
The valuations have been set using a variety of sources, including stamp duty data and the property price register.
The site divides the state into electoral districts for estimating property prices, a move criticised by Fianna Fáil Dublin City Councillor Paul McAuliffe.
“After a first look of the Finglas, Glasnevin and Ballymun area, there would appear to be a number of examples where revenue has estimated the price of housing. . . which is not correct,” he said.