What about a property tax?

ISAW

http://www.french-property.com/news/tax_france/building_land_tax/
this is a rezoning or land bank tax.
Does not have to be on the home. ( The French have a living and house ownership tax as well by the way).

ISAW

ISAW wrote: »

http://www.french-property.com/news/tax_france/building_land_tax/
this is a rezoning or land bank tax.
Does not have to be on the home. ( The French have a living and house ownership tax as well by the way).

Mods please redirect to this thread or vice versa:

http://www.boards.ie/vbulletin/showpost.php?p=68961365&postcount=1

Higgsy

Not sure about the members of this forum, but I feel I dont have a voice any longer. The government do not have a mandate for the policies they are currently trying to implement.

I for one, want to have a voice. If you agree, sign the petition:

http://www.ipetitions.com/petition/notoirishpropertytax/

cavedave

One issue with a property tax is what it will do to the banks. Obviously any increase in the cost of accommodation will reduce demand and thus price but lets assume that is a minor issue.

Suppose you are buying a house and have an extra 20 thousand in your banks. some people would buy the house for twenty thousand and give the cash as a side payment. This could reduce there property tax bill in future. Also the side payment amount would be low enough that you could say "oh he wanted a quick sale that why he went for 10% less than market price".

Now the house that should be down as 200K is down as 180K. Say half of buyers do this (evidence from France and other countries with a property tax would be needed to see if this 50% figure is roughly right). So now the average 200K house looks like it is worth 190K. The banks now have a situation where their assets are down in price by 5% and their assets to loan ratio is worse than it is now and they need more cash from us.

Basically with a property tax on value people will pretend their house is worth less than it is. With houses looking like they are worth less banks have to get more money into cover their balance sheets.so would a property tax require more capitalisation of the banks?

recedite

The greens have a site value tax as "policy" which would apply to land banks as well as to the site your house is built on. One advantage of this is that it does not disincentivise improvements to a home.
The question is, why didn't they bring it in a few years ago when developers and speculators were still getting tax breaks. Maybe the greens were just outnumbered by FF.

edanto

For this to be fair at all, it HAS to be a SITE VALUE tax which applies to developers as well as homeowners. It can't just be a tax on homes.

crossmolinalad

In Holland i have a house
must pay tax for each m3
At the moment i have tenants in it and i have to pay half of it and they have to pay the other half
they have to pay all of the local taxes too