Household charge will provide 'stable income' for local government
The Society of Chartered Surveyors Ireland has said that the proposed household charge announced as part of Budget 2012 will provide local government with "a more stable and sustainable source of income" than that provided previously by stamp duty.
Plans to introduce a new value-based property tax will be finalised in the middle of next year and Phil Hogan, Environment, Community and Local Government Minister, said the levy on homes will replace the flat rate €100 household charge announced for Budget 2012.
However, the society said it was vital that all money raised through the household charge is ring-fenced for use by local authorities to enable them to provide properly resources services for the public.
The society also said that the household charge/property tax should be paid by the occupier of the property.
Ed Carey, Chairman of the Residential Agency Professional Group of the Society said: "While the introduction of the household charge was an inevitable move away from reliance on the transactional nature of stamp duty, it is our view that the charge should be paid by the occupier, who benefits from the local services, as is the case in other countries such as the UK."
The SCSI also said that the method of assessing the Value Based Property Tax needs careful consideration in advance of its introduction.
"Given the fact that the previous value based tax - the Residential Property Tax - was perceived as an urban tax and eventually abolished, we would encourage careful consideration of all of the issues relating to the implementation of such a tax," Carey said.
"The proposed Property Price Database due to be implemented next year, will also provide a higher level of transparency in the property market and will provide the public with a greater level of information."
