Motor Tax!

minikin

Hi all and thanks in advance for your splendid contributions!

Under what legislation or statutory instrument does motor tax, the setting of it's rates and in particular the implementation dates of new rates fall? I'm interested in doing a bit of reading!

Is there something in law which states that new motor tax rates come into effect when announced in the Dáil? I was discussing this with someone today and they suggested that this was the case. I put the case that it is possible to purchase motor tax from the 1st day of the month in which the current disc expires.
The point was made that 'you have to pay the rates that pertain to the period of taxation.
I made the counterpoint that someone who taxed their car from 1Dec2011 to 30nov2012 would be getting 11months of the new taxable period at the previous years rate. Indeed if you purchase in advance (in the days prior to budget) you will get all 12months of 2012 at the 2011 rate.

So canny citizen A, whose motor tax expires on 31.12.2011 can purchase the 2012 disc at 2011 rates, whilst unwitting citizen B is forced to pay 2012 rates only a few days later. One document on www.environ.ie states that the 'rates become effective 1 January 2012'.

So is there clarification in law in terms of the timing of increasing the rate, when it comes to purchasing in advance?

Regards,
minikin

Victor

minikin wrote: »

Under what legislation or statutory instrument does motor tax, the setting of it's rates and in particular the implementation dates of new rates fall?

The Finance Acts. However, the current one likely isn't an act yet, merely a bill (an act that hasn't yet been approved by the Oireachtas).

Is there something in law which states that new motor tax rates come into effect when announced in the Dáil?

Years ago, on Budget day, the ail would meet in almost in secret and the budget wouldn't be announed until it had been passed. They changed the arrangement, such that now, only resolutions need to be passed on the day, and the Finance Act can wait - it often takes months. It is the resolution that gives immediate effect.

I was discussing this with someone today and they suggested that this was the case. I put the case that it is possible to purchase motor tax from the 1st day of the month in which the current disc expires.
The point was made that 'you have to pay the rates that pertain to the period of taxation.
I made the counterpoint that someone who taxed their car from 1Dec2011 to 30nov2012 would be getting 11months of the new taxable period at the previous years rate. Indeed if you purchase in advance (in the days prior to budget) you will get all 12months of 2012 at the 2011 rate.

There might be a slight advantage in doing this to the motorist. I'm not sure if you lose months though. In present circumstances, the government would like your money now, rather than later.

So canny citizen A, whose motor tax expires on 31.12.2011 can purchase the 2012 disc at 2011 rates, whilst unwitting citizen B is forced to pay 2012 rates only a few days later. One document on www.environ.ie states that the 'rates become effective 1 January 2012'.

The law is technical. A line has to be drawn somewhere.

ResearchWill

The Provisional Collection of Taxes Act 1927 deals with the issue of immediate tax changes before the passing of a budget.

minikin

I'm looking for just that line though - in black and white! People on boards have mentioned that they were able to pay online in advance for 2012, at 2011 rates up to yesterday (after the budget).

I've skimmed the 1920/4 act and 1976 without luck, anywhere else I should be looking? Will it state the 'cut off' date for advance payment at old rate in this years finance act?

So the new rate is chargeable at a rate contained within an unpassed bill, what if the oireachtas does not pass it?

Sorry if this is nonsense, I'm interested!

minikin

ResearchWill wrote: »

The Provisional Collection of Taxes Act 1927 deals with the issue of immediate tax changes before the passing of a budget.

But is the fact that the 'tax' is not applicable immediately - comes into effect following year - a factor?

ResearchWill

minikin wrote: »

I'm looking for just that line though - in black and white! People on boards have mentioned that they were able to pay online in advance for 2012, at 2011 rates up to yesterday (after the budget).

I've skimmed the 1920/4 act and 1976 without luck, anywhere else I should be looking? Will it state the 'cut off' date for advance payment at old rate in this years finance act?

So the new rate is chargeable at a rate contained within an unpassed bill, what if the oireachtas does not pass it?

Sorry if this is nonsense, I'm interested!

The resolution is passed within 10 days usually on the night, then it remains in force for a maximum of 4 months, when it is then passed into law in the Finance Bill. If not passed then it is a problem as all revenue must be repaid not an issue in motor tax but would pose a problem in cogs and fuel. I don't think it has ever happened.

minikin

thanks rw,

had a quick look at the i.s.b. (the iphone ap is very handy)
not getting anything useful in relation to this 'timing of updated m.t. rates' question though.

Perhaps there is nothing specific in law about it, and it's just an operational matter - when the bods get the chance to update the motortax.ie website?

Means Of Escape

What gets up my nose is having to pay extra if I want to tax my car on a quarterly basis
whatever way you roll the dice there is no justification for it.
In these hard times fewer people want to fork out a years tax in one go.
Anyone with a car 10 years or more would be foolish to tax it other than quarterly in case the car takes a dump on you And is beyond repair first month in.

FreudianSlippers

me bolly wrote: »

What gets up my nose is having to pay extra if I want to tax my car on a quarterly basis
whatever way you roll the dice there is no justification for it.
In these hard times fewer people want to fork out a years tax in one go.
Anyone with a car 10 years or more would be foolish to tax it other than quarterly in case the car takes a dump on you And is beyond repair first month in.

There is added expense in the collection of tax and distribution of discs on a quarterly basis