Local property tax (Ireland)
A Local Property Tax (LPT; Irish: Cáin Maoine Áitiúil or CMÁ) will come into effect in Ireland on 1 July 2013, and will be collected by the Revenue Commissioners. The tax will be on residential properties, with the owner a property being liable (though in the case of leases over twenty years, the tenant will become liable). The revenue raised will be used to fund the provision of services by local authorities. Such services currently include public parks; libraries; open spaces and leisure amenities; planning and development; fire and emergency services; maintenance and cleaning of streets; and street lighting.
Valuation and rates
The tax will be based upon the market value of the property, taxed via a system of market bands. The initial national central rate of the tax will be 0.18% of a property's value up to €1 million, and in the case of properties valued over €1 million, 0.25% on the balance. From 1 January 2015, local authorities will be able to vary LPT rates -/+ 15% of the national central rate.
| Valuation band € |
Mid-point of valuation band € |
LPT in 2013 (half-year charge) € |
LPT in 2014 (full year charge) € |
|---|---|---|---|
| 0 to 100,000 | 50,000 | 45 | 90 |
| 100,001 to 150,000 | 125,000 | 112 | 225 |
| 150,001 to 200,000 | 175,000 | 157 | 315 |
| 200,001 to 250,000 | 225,000 | 202 | 405 |
| 250,001 to 300,000 | 275,000 | 247 | 495 |
| 300,001 to 350,000 | 325,000 | 292 | 585 |
| 350,001 to 400,000 | 375,000 | 337 | 675 |
| 400,001 to 450,000 | 425,000 | 382 | 765 |
| 450,001 to 500,000 | 475,000 | 427 | 855 |
| 500,001 to 550,000 | 525,000 | 472 | 945 |
| 550,001 to 600,000 | 575,000 | 517 | 1,035 |
| 600,001 to 650,000 | 625,000 | 562 | 1,125 |
| 650,001 to 700,000 | 675,000 | 607 | 1,215 |
| 700,001 to 750,000 | 725,000 | 652 | 1,305 |
| 750,001 to 800,000 | 775,000 | 652 | 1,395 |
| 800,001 to 850,000 | 825,000 | 697 | 1,485 |
| 850,001 to 900,000 | 875,000 | 742 | 1,575 |
| 900,001 to 950,000 | 925,000 | 787 | 1,665 |
| 950,001 to 1,000,000 | 975,000 | 832 | 1,755 |
In the case of properties valued over €1 million, no banding will apply - 0.18% will be charged on the first €1 million (€1,800) and 0.25% on the balance. The government estimates that 85% to 90% of all properties will fall within the first five taxation bands.[1][2]
Previous property taxes
Household Charge
The Household Charge (Irish: An Muirear Teaghlaigh) was introduced by the Local Government (Household Charge) Act 2011[3], for collection in 2012. It was a flat-rate charge of €100 on each principal private residence, and acted as a precursor for the LPT.
Non-Principal Private Residence Charge
The Non-Principal Private Residence Charge (NPPR; Irish: Muirear ar Áit Chónaithe Phríobháideach Neamhphríomha) was introduced by the Local Government (Charges) Act 2009[4], for collection from 2009 to 2012. It was a flat-rate charge of €200, that was payable respect of residential property that was not the owner’s only or main residence.
Residential Property Tax
The Residential Property Tax (Irish: Cáin Réadmhaoine Cónaithe) was introduced in the Finance Act 1983 [5] and was abolished on 5 April 1997.
It was an annual tax, charged at the rate of 1.5% per annum on the portion of the market value of an owner-occupied house which was greater than (in 1996) £101,000, as long as the household income exceeded £30,100.
Hearth tax
References
- ^ Revenue Commissioners (Ireland) - Local Property Tax (LPT), Frequently Asked Questions (5 December 2012)
- ^ Budget 2013 (Ireland) - ANNEX B - Local Property Tax (LPT) (5 December 2013)
- ^ Irish Statute Book - Local Government (Household Charge) Act 2011
- ^ Irish Statute Book - Local Government (Charges) Act 2009
- ^ Revenue Commissioners - Residential Property Tax