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Dublin: 16 °C Tuesday 21 May, 2013

Pyrite homes, disabled accommodation to receive Property Tax exemption

The moves are outlined in a Bill published this afternoon which amends the Property Tax scheme before it begins in July.

Image: TaxFix.co.uk via Creative Commons

THE GOVERNMENT has published a Bill which proposes several amendments to the Property Tax scheme which kicks in from July.

Chief among the changes is the legal exemption for properties suffering from pyrite problems. The scheme proposes that houses will need to be certified by the National Standards Authority of Ireland as suffering from ‘pyritic heave’; when they are, the property will be exempt for at least three years.

Exemptions will also apply to people who have received a personal injury award and who need to spend a significant sum adapting their home to make it inhabitable. This will apply for as long as the injured person lives at the property concerned.

Any increase in the value of a home as a result of works to accommodate a disabled person can be ignored; this means that if a house becomes more valuable as a result of the works, its previous (lower) value is the one on which the tax is calculated.

Other changes will see legal permission for a deferral of the tax in cases where the owner of a property has deceased and the tax would be due from their estate. This will give estates up to three years to be processed and to meet their obligation.

This will also apply to someone who is in the middle of an insolvency arrangement under the new Personal Insolvency Act, and anyone who can satisfy the Revenue Commissioners that they have experienced a “significant financial loss” or expense which they could not have significantly foreseen.

Among the changes is some good news for local authorities: all housing owned by councils or approved housing bodies will be subject to tax at the lowest possible valuation for the next four years.

This means a flat rate of €90 per property instead of €315, for example, if the house was worth between €150,000 and €200,000.

An exemption will also apply to residential properties owned by charities which are normally used to help the charity carry out its duties – such as residential properties owned by scouting organisations where scout meetings are held.

Another minor change in the Bill provides that someone selling a property between two valuation dates is obliged to disclose its property tax valuation to its new purchaser – a move the Department hopes will incentivise against under-declaring the value of a home.

If a purchaser believes the home has been deliberately undervalued in previous years, they are required to submit a return to the Revenue Commissioners before the next valuation date. The Revenue will then pursue the seller for the shortfall.

Read: Revenue to send homeowners estimate of property tax

Plus: The table which shows how much property tax you’ll have to pay

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Comments (67 Comments)

  • The onus is on the buyer of a house to find out from the vendor how much he paid in property tax and report him to Revenue if you find out he’s underdeclared. Failure to do so will result in a 500 euro fine. Madness! They keep that Dail bar open far too late.

    I wonder would the vendor lie to you? Says me ‘how much have you been paying in property tax?’. Says him ‘a million euro a year’. That’s all right then job done :-)

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  • Sure didn’t they rush in the bond debt deal last week so our children are on the hook.So might as well rush in another bill to scrap the property tax @2am. Go on. Ye know its a half baked tax.

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  • The Property/Bondholder Tax will be defeated after the next general election anyway. Every candidate standing for election will have to sign up to repealing this unfair taxe imposed by Kenny and Gilmore. Not too many candidates in favour will be elected. There will be huge pressure on Fianna Fail to ditch this tax, Fine Gael will lose half their seats and Labour will be wiped out. There will be massive gains for Sinn Fein and independents. Whoever makes up the next government will swiftly scrap this unjust tax. In the meantime why bother paying?

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    • You said it homeboy, and they’ll get my vote.

      Bring it on,
      Ade fuggin Bayo

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    • Sinn Féin support the proporty tax in the North. Gilmore didn’t reverse any of the cuts he opposed upon entering government, Sinn Féin wouldn’t repeal the property tax if they were in power in the South.

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    • They can promise the sun, moon and stars all they like, but when they actually get into power and see the state of the country’s finances, it is likely that they will immediately renege and backtrack on all their election promises in order to get the country’s finances back in order.

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    • Anybody who thinks the next government will scrap the property tax will be very disappointed. Not a hope in hell.

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    • Reg 13/02/13 #

      It won’t be scrapped. Certainly don’t want to go back to high stamp duty rates as that was a very unfair form of property tax compared to this new system.

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    • And look and the services they get for it David. Try your spin elsewhere.
      Higgins has a black dog

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    • Dave, it’s not like for like as in the north they get different services. Our property tax is to pay bank debt.

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    • The vast majority of our debts are from the overspend in the public service, not the banking crisis.

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    • Right, so when is Enda gonna take the lead and cut his disgusting and offensive salary?

      Disgusted and offended,
      Adebayo

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    • David, the vast majority of our woes arises from the banks recklessly lending money to people who were not able to repay. Every thing (almost) flowed from that. The high pay in the public service flowed from the excessive pay that people in the eu commission and parliament receive. This pushed up the pay of politicians as they thought that they worked just as hard as meps.

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    • Don’t vote for parties who support a property tax. Vote for parties who will repeal it. Cutting spending would eliminate the need for property tax.

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    • Yes your right. Sinn Fein do support property rates in the North. Then again who wouldn’t. For around 900 pounds a year, education is free, doctors fees are free, hospital fees are free, bin collection is free and prescription charges are free!

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    • Wrong Ceara. SF don’t support a property tax up north. Westminster imposed it – Not SF. Secondly, all those freebies you mention are the reason the U.K is so heavily indebted and taxed. Overall taxes in the UK are generally higher than Ireland. Freebies have to be paid for. I would rather we abolish property tax in return for pending cuts to wages, entitlements, grants, etc. A low-tax low-spend economy creates growth, jobs and thus prosperity.

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    • David Higgins done a runner again.
      Adebayo is onto you….

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    • Was listening to Brian Hayes on Drivetime waffling about the finance bill and trying to justify the draconian Property/Bondholder tax. His latest stunt is making home purchasers snitch to the revenue about the property value the seller gave the revenue when calculating their property “tax”. Failure to snitch could result in a fine of €500. This fiasco only gets better. So Fine Gael and Labour are now asking Irish people to snitch on other Irish people. Oh how orwellian of you Brian. From now on I am going to call you Brian “Stasi” Hayes.

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    • Mark I never said sinn fein imposed it. Parties in this country try and compare property tax in this country to rates in the north which is completely wrong. Also the UK have the same personal tax rates that are in the south of 20% and 40%. They also have an additional 50% band on anyone earning over 150, 000.

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    • A lot of people who aren’t wealthy have no opportunity to react, politically, to having the burden shifted to them. Fine Gael trying to shift their portion of that deal away from them (or to be more precise, individual politicians’ trying to shift their portion of that deal away from the people who can vote them out of office) feels like a breach of contract. Personally, I “feel” something I’m paying out of pocket more than I feel the same amount deducted from my paycheck. (To take the property tax example, I’m paying for that through payroll deduction so it’s not really “broadening the tax base” and it feels the same.)

      I support additional tax bands on anyone above €100k. Bit I realized Fine Gael are (in essence) a conservative party so their policies are likely to be ‘let the peasants pay’. What they are doing is transferring all the taxes to the middle class without any proper spending cuts and wealth taxes. I support a wealth tax provided we cut expenditure rates on entitlements, government wages, grants etc. This would eliminate the need for a property tax or water charges.

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    • Are you joking??? It’s most definitely from the banking crisis and the Anglo bail out!!!

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    • What a magnanimous offering to people who have thousands.

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  • I just like how Article 40 of the constitution only applies to some people.

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  • The government are wasting their time because property tax is likely to abolished in the next election.

    Ireland needs to revert to the low-tax low-spend economy like in the 80′s and 90′s. This eliminates the need for “broadening the tax base”.

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  • Is this a joke?

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  • Ireland is one of the most amazing countries to live in . The only Country in the world where left wing and socialist parties are opposed to taxes on property . The landlord and property moguls can relax if you guys get into power.
    We then turn around and within three years vote as the most popular party in the country a party that crreated this mess in the first place
    The Queen of England must be delighted to have no more to do with us !

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    • Property tax targets people who spend into a pillar economy (the domestic economy). We do Not need property tax or water charges because we could compensate by cutting our spending on entitlements, wages, etc.

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    • The Irish property tax is a tax on homes and that is the objection. There wasn’t a lot of oppostion to NPPR tax which came in a few years ago as an income can be gotten from those residences unlike the principal private residence. Noonan has it in his sights to allow the property tax to be offset against rental income making the tax paid by the wealthy landlort revenue neutral. So you see the landlord and property moguls can relax with this shower in power. No tax on development land no matter what the zoning. No tax on farm land from which you can get a yield. No tax on vacant houses owned by companies. This is not a property tax or a wealth tax; this is a uniquely Irish home tax.

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  • What about priory hall ?

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    • Priory Hall was already listed for a specific exemption – any ghost estates or unfinished properties which were exempt from the household charge will also be exempt from the property tax.

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  • Size of that troll ! Lol

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  • John F 13/02/13 #

    Its the Pyrite thing to do!

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  • Is this meant to be a “good news”, story???

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  • Check out paragraph 3!
    A grant to make your house inhabitable?

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  • Jimmy 13/02/13 #

    This is great news for me personally. I recently had to have my front door blocked up and now use my specially adapted garage door to enter and exit my house due to my disability, chronic obesity. The HSE West funded all the works carried out, which was great, it saved me forking out €9000.

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    • I’m not being smart here Jimmy but have you made efforts to lose weight, I don’t know if being heavy qualifies as a disability? Correct me if I’m wrong.

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    • Troll

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    • Put down your fork!

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    • Jimmy 13/02/13 #

      Hi Chris. I have but unfortunately it hasn’t been easy. I have great support from Community Care and Social Welfare which is great as chronic obesity is classed as a disability.

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    • That’s fair enough Jim I wasn’t being smart, I just wasn’t aware that it was classed as a disability. A quick tip eat less and exercise. (again not being smart) hope things work out.

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    • Jimmy 13/02/13 #

      Thanks Chris. Yes it is, thankfully. I’m also fortunate that the HSE provide transport by way of taxi twice weekly to meet the Community Officer as the bus stop is half a mile away. Believe me I have tried everything but my Doctor tells me a lot of my problems stem from lack of self esteem and no confidence. I comfort eat as a result…

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    • But surely if you got out and joined some fitness group even a walking club that would greatly increase your self esteem and overall well being. I’m not judging you just saying. One of my uncles was massive, really big, until we gave him the shoe up the hole he needed. Now he goes bowling 3 times a week and does kettlebells, he’s a new man.

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    • I don’t think this Jimmy will be winning matches!!

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    • Jimmy 13/02/13 #

      Chris. Believe me I’m trying. I’m 36 and have suffered from this affliction since I was 14. It’s funny you mention getting out more. HSE West are providing me with a trainer to assist me with my recovery. Two nights ago, we walked to the end of the road, quarter of a mile or so. To you that might seem ridiculous. But to me, I felt like Lance Armstrong when he landed in the moon! This was a giant step for me. I really had to push myself and at times I felt like giving up, but John, my trainer kept pushing me….not literally, but emotionally! We are going again tonight, same distance. John says it will improve my confidence. It’s a bit wet though this evening, hopefully John remembers the Golf umbrella…

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    • Jimmy are you being serious saying that the HSE provide you with a trainer, at their/our expense? Jesus Christ you are only 36 and you have to be pushed to walk a quarter mile. Seriously mate you need to get your shit together or else you will be wearing a wooden suit before you know it, plus this is another burden on the tax payer.

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    • You mean neil armstrong? Lance & his drug days may indeed have sent him to a few moons during his career!

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    • Jimmy 13/02/13 #

      Yes Chris. The HSE provide me with a trainer. I don’t have to pay thankfully. I’m disabled. I’m in receipt of disability payments, I have a Medical Card. My home was specially adapted to suit my requirements. Should I not be entitled to assistance like any other citizen. Granted, I don’t work, but I can’t because of my situation. Do you think I enjoy being like this. A prisoner in my own body for the last 22 years! I am trying. With support, goals are being set for me. I hope to be able to attend a workshop one day a week within 13 months to help prepare me for the workplace. I too have hopes Chris, just like everyone. I want to succeed!

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    • Hi Jimmy – welcome to Twitter, you’ll find it’s lots of fun once to start following people / getting followers as I see you have neither at the minute.

      Feigning disability, even on an on line forum such as this is pretty sadistic and reflects both poor intellect as well as a lack of sympathy for those who actually ARE disabled and depend on the State for aid.

      I’m sure you wouldn’t do this though.

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    • Ah lads, he’s messing. C’mon.

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    • Jimmy I hope you are taking the piss, you keep referring to it as an affliction and a disability. It’s of your own doing, would you get up off your ass and go for a run or a walk, its not that hard. i cannot believe that a trainer has being laid on for you also, this is an absolute disgrace. You are being provided with everything but you are doing nothing. Good luck with whatever happens but I don’t see a fairytale ending for you.

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    • Chris i think hes pulling your leg

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    • If he’s not Vinny then it’s a sad day.

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    • Jimmy 13/02/13 #

      Hi Deirdre, you are right. I meant Neil Armstrong…I’m laughing myself at that.

      Eamonn, I am new to Twitter. You are correct. Were you not new to Twitter at one point. What are you trying to insinuate?…I’m not feigning anything. How dare you! I suppose you’re going to tell me, maybe my fingers are too fat to type If you can’t laugh at yourself like I am in my avatar, what’s the point, that’s the first step admitting you have a problem and addressing it…I have realised I have a problem. What’s your excuse with your Avatar?
      Chris. I look forward to becoming part of society, maybe like your Uncle who was in a similar situation…here’s hoping!

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    • Ryan'O 13/02/13 #

      It’s a sad day and a new low. That is all.

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    • Don’t be ridiculous! Firstly, I never mentioned your avatar picture – you brought this up.

      Secondly, your comments are an insult to anyone who is living with a disability. Shame on you! I hope you never actually have a problem like this to deal with.

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    • you are taking the piss jimmy…!!

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    • Jimmy 13/02/13 #

      Eamonn. Might I suggest going to see Frankie Boyle Live or someone similar….you need to lighten up and laugh. Don’t take life so seriously. I’ve learned not to and as a result, I am happy inside and dealing with my disability…

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  • slightly off topic, but I have to say maximum kudos on the choice of picture Gavan. (I’ll refrain form say that it is totes amazballs)

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  • What the cost in getting the NSA to cert that ur house has Pirxte. What a stupid idea we know all the estates that have it

    Reply

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