All Homes to be re-valued for Property Tax in November 2021

Jerry Attrick wrote: »

It'as a self-declaration tax. Surely anyone unfortunate enough to own such a house would value it at close to zero as it's completely unsaleable?

I don't believe it is a self declaration tax (property) its assessed by local authorities? I do believe there are exemptions for properties affected by this dreadful nightmare and besides, likely most of these properties built after 2013, I'm open to correction on this

Dav010 wrote: »

It may be the least worst way of assessing owners for property tax. The counter argument to your example is the person earning less may have lower outgoings than EO’B, or may have paid considerably less for the house. So valuing properties in bands may be the fairest, everyone hates it equally.

Yeah I don't have a strong opinion on it either way. Just answering why it is considered to be a regressive tax.

One of the madder things about it was that buying ANY house in 2013 exempted you from LPT, not just a new build. I think it was revealed as an error they made at the time which was removed for subsequent years, but has still meant 8 years exemption for anyone who bought a second hand house that year and kept it as their main residence.

Properties that are exempt from Local Property Tax
Properties purchased in 2013 are exempt until the end of 2021 if used as your sole or main residence. If the property is subsequently sold or ceases to be your main residence between 2013 and 2020, the exemption no longer applies.[\quote]

L1011 wrote: »

Houses built >2013 haven't got a comparable valuation date hence can't be taxed, there is a new valuation date in November 2021 so that sorts that out.

It will then be the case that >2022 houses aren't taxed til a valuation date is set again. The original revaluation date was meant to be something like 2015 but has been repeatedly booted down the road when elections loom.

Is it seriously the argument its taken 8 years to comparable valuations, this is just beggar's belief, how long has the property register been in operation. I just don't get this argument, not being critical of you, just this extraordinary situation.

C14N wrote: »

I don't understand this argument. How is property tax regressive? If your property has a higher value, you pay more, and property owners in general are more likely to have higher wealth than non-property owners.

Because it has no relationship with your ability to pay. It is a notional value should you want to sell your house and would be OK if you paid it then. But .... my wages have not increased and I don't see how I need to pay more tax because my neighbours have sold their houses and apparently raised the value of my house at the same time.

I am not selling and it is already costing me more of my supposedly disposable (after tax income) to maintain it and now I have to pay more tax because someone else decides to value my house at a higher rate???? Anyway, I bought and paid for my house with my own money... without needing or getting any help from government, in fact I saved them money by doing so.... why then do I have to be punished for that achievement?

I was told at school that tax has to be fair and seen to be so, this is not. Tax the sale price, if you have to... not the estimate.

L1011 wrote: »

Its self-declaration. You're sent a suggested band but can correct this at will

Now, if you sell a house for vastly more than the band you had picked, you may be asked to explain this!



The valuation date is the only thing that was outstanding - Revenue/councils do not actually value the house.

The date was kicked out, repeatedly, to try protect the sitting Governments seats in various elections.

Ah, I understood, thanks but it's just quite shocking so many properties exempted and for what appears to be delays in a, process, just appalling, I genuinely had not idea this was the situation

L1011 wrote: »

Its not delays to a process; its deliberate delays by Governments scared of electoral responses.

It was delayed in Budget 2016 by Noonan as there was an election looming, and in Budget 2019 by O'Donoghue as there was an election looming. It was most recently kicked out a final year due to COVID.

If the coalition was shakier they probably would have kicked it out again.

Yes I'm hearing you, just galling all the same

touts wrote: »

Fully agree with property tax to pay for services but it should be based on those services not on some fictional valuation of the house.

Start with a base of say €20
Connected to public sewer. €20
Street lighting outside your house €5
Footpath outside your house €5
Within 5km of a motorway €5
Within 5km of a Library. €5
Within 2km of a School €5
Within 1km of a public transportation link €5
And so on

Basically add up every service in your area that the tax is supposed to pay for and pay a small contribution to that service. Those services generally add to the value of the house anyway but this way people can see what their tax is paying for. People benefitting the most from state services the most pay the most .

This would leave isolated houses that are exceptionally expensive to serve paying less than urban dwellings which are comparatively cheap

The eight streetlights on my road of 60 houses will cost less to maintain (and probably to install - but as they were developer supplied the house cost covered that) than one for a rural house

Agreed, we are long overdue a menu of charges for the services we can expect from councils.
'
Anytime you ask what you get for your tax you are fobbed off with 'libraries and swimming pools' etc.... It is very hard to get an actual list of service entitlements off them, try getting a road fixed or grass cut or tree maintained - we used to get these for our tax payments before they made up the property tax. We also got bin collections paid for as well, before we went down the private enterprise route where you pay separately and will keep paying more for your less waste collected because if we all reduce as much as we should, the business becomes unsustainable, without cost increases.

While I agree we should have a list of services and charges, I would also argue that we were already paying for these services before property tax.

Ger Roe wrote: »

While I agree we should have a list of services and charges, I would also argue that we were already paying for these services before property tax.

The LPT is not new income to the councils, it replaces previous income.

So there won't be any new service provided specifically due to LPT income.

Dempo1 wrote: »

Just in response

What services am I paying for exactly?

http://localauthorityfinances.com/

Pick your local authority here and have a look.

L1011 wrote: »

Houses built >2013 haven't got a comparable valuation date hence can't be taxed, there is a new valuation date in November 2021 so that sorts that out.

It will then be the case that >2022 houses aren't taxed til a valuation date is set again. The original revaluation date was meant to be something like 2015 but has been repeatedly booted down the road when elections loom.

I'm sure they could come up with some conservative value, seeing as the just built it, there is probably a mortgage and valuation for this, and a valuation for insurance!

The 2013 exemption doesn’t seem fair to the rest of us. Was t aware that was the case

People would be arguing that they should be paying based on what the purchase price notionally could have been at the last valuation date - cause thats the date everyone else is paying for. Legislation would have to be quite strong on that to avoid challenge.

Basically it was meant to be every 3 years, which could be argued for on the basis of development levies paid as part of the house cost - but its somehow turned in to 8.