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Dublin: 10 °C Thursday 23 May, 2013

Expert group set to issue property tax recommendations within four months

The government is expediting the process to determine what will eventually replace the already controversial household charge.

Image: Eamonn Farrell/Photocall Ireland

AN EXPERT GROUP will convene in the New Year to consider the rates of property tax which should be applied on houses in Ireland as a permanent replacement for the household charge.

The process has been expedited by the government with the expert group now expected to report towards the end of March or the beginning of April next year, according to a spokesperson for the Department of Environment today.

“The group will report in late March or early April. We’re talking two to three months, depending on the volume of issues. It’s not going to drag on,” a spokesperson told TheJournal.ie today.

Who will be in the group has not yet been announced but the Irish Times has reported this morning that it will include representatives from government departments as well as members of the Revenue Commissioners. It will likely be chaired by the Department of Finance.

It comes amid reports this week that the charge would be based on the Commission on Taxation’s 2009 report which recommended an annual tax on residential housing that would vary according to the value of the property.

Valuation bands

The report said it should be €188 for houses up to the value of €150,000; €563 for houses worth between €150,000 and €300,000; €938 for houses between €300,000 and €450,000; €1,313 for houses up to €600,000 and €2,188 on houses valued at up to €1 million.

Any houses valued between €1 million and €1.5 million would face a tax of €3,125.

However, the spokesperson for the Department of Environment said: “Everything will be considered by this group. It could be completely different and it has to go to Cabinet before anything is legislated on”.

Despite reports that the new property tax could come into effect in 2013. The Department said that it still anticipated the household charge of €100 annually would be in place for two years.

“At the moment the plan remains for the household charge to be in place for two years,” the spokesperson added.

The charge will come into effect in the New Year and anyone who owns a property will be expected to have agreed an instalment arrangement or paid it in full by the end of March 2012.

A number of TDs including independents and Sinn Féin party members have said they will not pay the charge in protest at its imposition. A group of independents is urging others to boycott what they consider to be a “regressive tax”.

Responding to Environment Minister Phil Hogan’s public comments about the eventual property tax, independent TD Thomas Pringle, who is not paying the charge, said Hogan’s comments had been “a complete reaction to opposition” to the household charge.

“I doubt if this government is capable of implementing a fair and equitable tax system,” Pringle said of the eventual property tax.

Hogan has called the TDs’ boycott a “PR stunt” while other government ministers have indicated it could be docked from wages or welfare in the event it is not paid.

Tenants not liable

Meanwhile the Irish Property Owners Association has withdrawn its recommendation that members should pass on the household charge to tenants at the request of the Competition Authority.

Despite the legislation stating that the charge is to be levied on property owners and not tenants IPOA told its members to impose a levy on tenants to meet the cost.

The Competition Authority said this could be in breach of competition law and said it would seek an injunction if the advice was not withdrawn.

The advice remains on the IPOA website under the Authority’s clarification notice. A government spokesperson said the legislation makes clear the charge is on property owners and not the occupier.

“There is no facility for them [owners] to pass on the charge as it stands,” the spokesperson added.

Budget 2012: Who exactly has to pay the €100 Household Charge?

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Comments (27 Comments)

  • Bloody Hell! That’s some jump in the taxation level from houses valued at 150K and those over 150k, screwing the middle class again.

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  • Ah good to see they are calling in the “experts” I suppose they will get €100,000 each in wages while they decide on what to charge us, what a bloody joke

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  • Donna 22/12/11 #

    So who are these so called experts? Have they experience and degrees in Property Economics and Construction Economics? Will the consult Estate Agents and Valuers? The very ones that have a huge responsibility for the overinflated property values of the last decade. Where have these recently published figures actually come from? The word arbitrary springs to mind.
    How will the value be calculated? A price per square foot based on the totally out of date and unrealistic rebuilding values as set out by the SCS? Or will it be based on the size of the plot your property is on?
    So you might have a 4,000 sq ft house on a third of an acre or a cottage of 700 sq ft on 10 acres. Both paying hugely different rates.
    It’s unbelievable. Will there be any public consulation at all? This government was elected by the people of Ireland but we have absolutely no say in how our country is run. We’re just getting trampled on.
    Sorry for the long post, got a bit carried away.

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  • The old “expert group” strikes again!

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  • An ‘expert group’ could we find out what they are ‘expert’ at when the members are announced?

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  • I’d rather go to jail than pay this,I simply can’t afford it

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  • Folks should not pay this bank tax. That is what it is. As enda said it is not our fault. Don’t make it easy for them. We rolled over for the last few years as we were in a state of shock.

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  • Donna 22/12/11 #

    @Reg, so if you live in the middle of the countryside for example and don’t actually have access to parks, playgrounds, libraries, litter collections, street lighting, footpaths, recycling facilities, swimming pools, leisure facilities, a beach, etc then you might agree that this property tax isn’t actually going to help everyone that is expected to pay it??
    My problem with the current situation is the complete lack of public consulation and transparency on behalf of our government.
    I understand you get nothing for free in this life but I think we’ve all had enough of rip off Ireland at this stage, and this proposed tax seems like yet another rip off to me.
    Of course I might stand corrected down the line and if that happens I will put my hands up and admit I was wrong.

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  • Just heard Enda and Richard Boyd Barrett giving to different spins on how this will impact the less well off. Politics seems to have reached new lows in terms of people saying what no sane person would believe.

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  • If even 0.01% of the 1,600,000 households liable for this charge, refuse to pay, that’s 16,000 households. If judgements are to be taken against all these people in court for a deduction from wages and social welfare, it would take hundreds of years to get through them all! That’s before we even take cost into account! A deduction cannot be taken without a court order to do so.
    Again, this is only if 0.01% resist the charge. I believe this figure is a huge underestimation.
    This scare tactic will not work Mr. Government.
    They say the 100 euro charge is unfair and in an attempt to make it fairer they want to increase it and charge more??The level of contempt and perceived level of lack of intelligence this government is showing towards the Irish people, is nothing short of laughable if not highly insulting..

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  • If they do bring this in I hope it’s Ireland’s “pole tax” moment and the Irish kick off. It seems the Irish bend over and take what ever is given to them with out any fuss !

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  • I thought Dick Turpin was hung in York.

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  • EXPERT GROUP !?
    I have to laugh.
    Where were these groups when they were needed most. During a time when property developers financially harvested and raped the system.
    Politicians under one umbrella with developers. ( Old Boy Network ).
    Expert groups my ass.
    This government and the previous one haven’t the intelligence and education enough to run a newsagent.
    It is most evident that people with savvy have emigrated for a better life elsewhere.
    Braindrain is very much apparent. Especially in political circles.

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  • There will be demonstrations
    Someone call for what’s the word when you ask for a vote to take place over this for the public to vote that is not these pencil pusher working for gob sh#t Enda Kenny

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  • Every one in the country shouldn’t refuse to pay this. As simple as that.

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  • So hang on.. The tax is based on the value of the property.. But the value of the property when?
    When it was bought? When the tax is introduced? Will the charge be reduced if your homes’ value decreases?

    Just thinking of all those in negative equity out there, this tax stands to be quite unfair if based on the price of the house at the time of purchase.

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  • Welcome back The Expert Group! For a short while, Like many, I mistakenly thought this group were on tour, disbanded or simply entombed. But not their fans, most of whom can be found slouching around a big table in Kildare Street, raising their hands in evangelical gestures when their lead singer Kenny Scourge De Taxpayers warbles. Only outdone in popularity by The Ahern Amnesia Choir and the deeply lamented Bank Bailout Band, The Expert Group seem certain to return again and again over the coming years with their all time favourite jingle Pass the Hot Potato.

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  • Reg 22/12/11 #

    So what is going to replace the billions that were taken in by stamp duty every year. Stamp duty is no more so what tax should we introduce? Regardless of the banks the state is still spending more that it takes in. Public spending has to drop further and taxes will have to rise. While it is unfortunate that many paid stupid levels of stamp duty over the last ten years, many others paid nothing. An annual property tax/council tax is a perfectly legitimate and more sustainable form of taxation just like it is in dozens of other countries.

    Reply

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