Revenue to estimate property tax
Revenue is to send homeowners an estimated value of their home and property tax due, in letters to be issued in the coming weeks.
The local property tax payable on the market value of a property is to come into force from July and will be administered by Revenue.
Revenue will write to residential property owners in March including notification of an estimated amount of local property tax, a booklet on the operation of the tax, valuation procedures and payment methods and a form for completion.
The completed forms with a self-assessment of property value will have to be sent back to Revenue by May 7th on paper or May 28th electronically. The return will be valid until 2016 unless circumstances change.
If Revenue believes the amount of property value declared does not reflect the market value, it may question the declaration.
If people refuse to pay or do not send back the form the tax will be deducted at source, by sheriff or court action or attachment orders based on Revenue’s estimate of value, Revenue said
Revenue will develop a register of residential properties using sources such as Revenue data, household charge data and Private Residential Tenancies Board data.
The amount to be paid will be based on market value as of May 1st 2013 and will be divided into market value bands starting at €0 - €100,000 and going up by €50,000 per band up to €1 million. The liability at 0.18 per cent will be calculated at the mid-point of the band.
Properties valued over €1m will be assessed at 0.18 per cent for the first million and 0.25 per cent on the value above a million.
Payments can be made in one single payment or instalments from July.
Among houses exempt from the tax will be newly constructed properties which are unoccupied and unsold, mobile homes and houses in certain ghost estates.
Temporary exemptions include until the end of 2016 include new and previously unused properties purchased from a builder or developer between January 1st 2013 and October 31st, 2016 and second hand properties purchased by a first time buyer this year.
Details of property tax payable are contained in a Frequently Asked Questions document published by Revenue.