Photo credit: Gript

REVEALED: The new Local Property Tax bands

The Department of Finance said all properties will be revalued every four years.

Homeowners across the country have received mixed news from the Department of Finance today, as the government announced new tax bands on residential property.

Minister for Finance Paschal Donohue said that the majority of people who will be impacted by increased Local Property Tax (LPT) rates will be expected to pay an extra €90 under the changes, although his department estimates that 53% of homeowners will see no change, and 11% may see a decrease.

“The majority of homeowners are likely to see either a decrease or no change,” Donohue said.

“Where increases arise, the majority will be a single band (€90), notwithstanding the significant increases we have seen in property values since 2013. We have maintained the overall structure of the tax which is broadly understood and accepted.”

3% of homeowners can expect to see their property jump two bands, increasing their annual LPT liability by over €100, whilst 33% are expected to go up by one band, under €100.

The CSO estimates that house prices have risen in value by 90% since 2013, as the government announced the new LPT structure would see an additional €70m raised annually for the Exchequer.

New homes will be added to the LPT register each November, whilst all properties will be re-evaluated every four years.

“The next step is to prepare the necessary legislation to implement these changes to allow Revenue make the necessary preparations for the valuation of residential properties and the introduction of the new charging structure,” Donohoe told the Dáil.

The government expects the LPT bill to pass through Leinster House by the  end of the summer, with homeowners to be charged the adjusted amounts in the new year.

 

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