CONCERNS ARE BEING raised that householders in the Dublin area could be facing an “uncontrollable” rise in Local Property Tax rates, unless the Government intervenes.
It comes amid continuing price rises in the housing sector nationwide, and in the capital in particular.
The latest quarterly report from property website Daft.ie showed asking prices in Dublin were up 25 per cent, compared to the same period last year.
And local representatives are warning that they may be powerless to prevent the tax — which is linked to a home’s value — from soaring, after an upcoming revaluation of house prices in 2016.
“Prices across the country, but especially in Dublin, have rebounded as a result of the general economic recovery,” Fingal councillor Keith Redmond said.
As a result, when the revaluation of property prices are done in 2016, we will find that prices have increased far beyond 15 per cent of their 2013 values.
“This means that the 15 per cent maximum reduction that councillors can impose on the Property Tax will not cover the revaluation increases and the local property tax will soar uncontrollably.”
Under the legislation which set up the LPT, a mandatory revaluation of properties must take place in November of 2016.
The tax payable for 2017 will be based on that new estimate.
And in an answer to a parliamentary question last month, Finance Minister Michael Noonan said there were currently no plans to change that schedule…
“The initial valuation of a property on 1 May 2013, assuming it was made in good faith, is valid from 2013 to 31 October 2016, and will not be affected by any increase or decrease in property prices or other changes, including repairs or improvements made, during this period.
The next valuation date will be 1 November 2016.
KildareStreet.com
Noonan referenced the provision in the legislation which allows local authorities to reduce the LPT rate by up to 15 per cent in their area, and added…
I am satisfied that the legislation provides certainty for homeowners, and I have no plans to amend the basis of valuation of property for LPT purposes.
Reaction
A number of councils — including the four Dublin local authorities, and Cork City Council — have already voted to reduce the rate payable by the maximum amount for next year.
“What we need to do is to postpone this revaluation in two year’s time,” Dublin Fine Gael TD Eoghan Murphy said.
I think its incredibly unfair to expect Dublin tax-payers to pay even more property tax rates.
“The idea that we would have to pay 25 to 35 per cent more simply isn’t workable.”
Fianna Fáil’s Finance spokesman Michael McGrath is also calling for the planned revaluation to be scrapped. The Cork TD warned last month that the some homeowners could see their home rise by three or four valuation bands if it goes ahead, adding up to €360 to their annual bill.
The two coalition parties are expected to come under pressure from Dublin TDs over the issue in the coming months.
TheJournal.ie is part of Journal Media Ltd, which has some shareholders in common with shareholders in Daft.ie.
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