Property Taxproperty tax

From 1 July 2013 the much talked about Property tax on residential properties will be introduced. Some of the main conditions of the tax are as follows:

  • The Property Tax will be collected by the Revenue Commissioners and not a Local Authority.
  • The market value will be assessed by the owner of the property and  the initial valuation will be valid for up to and including 2016.
  • In order to determine the correct valuation – valuation guidance will be issued by the Revenue Commissioners or taxpayers can pay to use a valuer.
  • Property tax will be levied at 0.18% for the first €1,000,000 and 0.25% thereafter.
  • Properties with a value of more than €100,000 and less than €1 million will be assessed at the mid-point of valuation bands of €50,000 width.
  • Properties valued in excess of €1 million will be liable at 0.18% on the first €1,000,000 with no banding applied.
  • Using an example of a property between €150,000 – €200,000 threshold the charge in 2013 for the half year will be €157.00.
  • Voluntary deferral will be available for this property tax for low income earners. However, interest will be charged on deferred amounts at a low rate.
  • Exemption to be confirmed but currently will be from local property taxes for new and nearly acquired or previously unoccupied homes acquired before 31 December 2016, and exemption will also apply to first time buyers and residents in unfinished estates.