Tax on second homes raises €51m for local authorities

THE €200 tax on second homes introduced in the April budget has raised more than €51 million, according to figures seen by The…

THE €200 tax on second homes introduced in the April budget has raised more than €51 million, according to figures seen by The Irish Times.

More than 1,400 people have paid the annual non-principal private residence (NPPR) charge for more than 10 housing units each, while at least 98,500 people have paid for one unit each.

The tax is not expected to be increased in today’s budget.

The fee, which goes to local authorities, applies to people who own a property that is not their sole or main residence.

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Local authorities had received a total of €51,780,220 by Monday of this week. Dublin City Council had collected the largest amount – €9,428,140. Cork County Council raised €4,092,960, Kerry County Council €2,621,300 and Fingal County Council €2,618,420.

Dún Laoghaire-Rathdown received €2,382,020, Wexford County Council €2,253,040 and Donegal County Council €2,021,640. The authority which raised the least was Monaghan County Council, with €322,560.

A total of 134,727 people had paid the charge by November 18th.

Of those, 1,434 people paid for over 10 housing units each and 34,792 paid for between two and 10 units, with the remaining 98,501 paying for one.

This year’s payment was initially due by the end of September but the deadline was extended by a month before the introduction of penalties at €20 a month.

The 2010 charge will have to be met before June 30th of next year.

The Department of the Environment had initially predicted €40 million would be raised.

The Minister for the Environment John Gormley’s spokesman said the figures showed the scheme had been a success.

“These figures show the clear success of the levy. It has brought in €51 million to local authorities, providing badly needed cash buoyancy to them and enabling them to maintain service levels in many different areas,” he said.

Generating low sums were South Dublin County Council at €1,972,360, Cork City Council at €1,861,800, Galway County Council at €1,697,020 and Galway City Council €1,716, 820.

Clare County Council took €1,682,980 and Mayo County Council, €1,581,560. A total of €1,570,400 was raised by Kildare County Council, €1,266,920 by Wicklow County Council, €1,201,040 by Limerick County Council and €1,074,960 by Limerick City Council. Meath County Council collected €1,070,700.

Other local authorities received figures of less than €1 million.

Most payments were made through the website www.nppr.ie. The rest were processed by local authorities.

The main types of residential properties liable for the charge are private rented properties and vacant properties, except new but unsold residences. Holiday homes, including those belonging to overseas owners, are also liable.

1,400:The number of people who have paid the annual charge for more than 10 housing units each. Meanwhile, 98,500 people have paid for one unit each.

Mary Minihan

Mary Minihan

Mary Minihan is Features Editor of The Irish Times