Property tax changes: Owners of high value houses face largest rise

ireland
Property Tax Changes: Owners Of High Value Houses Face Largest Rise
Stock picture of housing in Lexlip, Co Kildare taken from a Helicopter.
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The owners of mid-to-high value range residential properties which have seen above average price increases are most likely to face a higher local property tax bill under a revised structure for the tax.

The Cabinet has agreed to cut the rate at which the tax is charged and to broaden the bands in a move that will see the bills of more than 50 per cent of households remain the same.

According to the Department of Finance, the changes will result in higher charges for 36 per cent of homeowners, no change for 53 per cent while 11 per cent will see their charge reduce.

Under the revised scheme, homeowners will have to value their homes in November and then make a return to Revenue.

The revised tax bills will apply for 2022 payments.

A restructuring of the bands means the owners of lower-priced houses are likely to see no change. Had the bands not been revised, the sharp house price inflation since the tax was introduced in 2013 would have seen many lower-priced homes face significant increases.

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Minister for Finance Paschal Donohoe said the impact of the changes for the majority of people for whom there was an increase would be €90 as a result of their property moving up one band.

Mr Donohoe said the changes would also bring properties built since 2013 into the charge and combined, this was projected to deliver a yield of €560 million.

Under the revised scheme, property valuations will be updated every four years.

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Some 100,000 houses built since 2013 which are currently excluded will be brought into the net for the first time.

The main increase in revenue will come from this inclusion of homes currently excluded.

Currently, 80 per cent of the monies raised are retained in the area, with 20 per cent sent to central government and then dispersed to local authorities.

From 2023, The Irish Times reports that 100 per cent of the property tax collected will be retained by the local authority, with the Exchequer making up any shortfall.

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