In what had been widely anticipated, the government proposes to introduce a property tax on residential property with affect from July 2013. The tax is to be self assessed with home owners having to decide what value from €100,000, their property is worth. There will be bands of €50,000 and revenue will take a mid range point between bands. Therefore for example, if a homeowner assessed their property between €150,000-€200,000, the tax would be assessed on €175,000. The rate of tax will be based on 0.18% of properties up to €1,000,000 and at 0.25% on property values over €1,000,000. A typical home value of say €250,000 will attract a tax of €450.00. It is felt with values now 50% or less than at peak levels, most homeowners will be paying in the order of €300 for a full year which will begin form January 2014.
Gerard O’Toole, Director of Tuohy O’Toole and current Vice Chair of the Western Region of Society of Chartered Surveyors, was interviewed live of RTE, and commented “that Society of Chartered Surveyors broadly welcomes the property tax provisions. Whilst we understand that they will not be welcome, the country had to broaden the tax base and we were one of the few countries in Europe that did not have a property based tax. However, we do have some reservations in that we felt the tax should have been based on occupation and not ownership, similar to how commercial rates are determined. Moreover, it was important for property owners to be given very clear guidance on the system which I understand that Revenue are to provide. Finally it was important to see some transparency surrounding the use to which these funds would be put to as they should be ring fenced for the provision of local services only”.