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Dublin: 16 °C Tuesday 21 May, 2013

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

The new Household Charge is one of the most controversial proposals in the Budget – but who exactly is going to have to pay the new €100 charge?

Image: Eamonn Farrell/Photocall Ireland

We all knew it was coming – the government first mooted the plan for a Household Charge all the way back in July.

But now that it’s here, who is going to be hit by the new  €100 charge?

Today’s Budget declared that the charge, which is being introduced to “fund vital local services” will be introduced in 2012 and is expected to raise some €160 million per year.

The charge will come in from 1 January. Homeowners will have the choice as to whether they pay it all in one payment or spread out over the year in four installments.

Owners – rather than occupiers – of the household will be liable for the charge.

On the Six One News this evening, Minister for Finance Michael Noonan said that around 400,000 households would be exempt from the charge.

Properties which will be exempt from the charge include:

  • Social Housing
  • Some housing estates which have yet to be finished (‘ghost estates’) which will be named by the Department of the Environment
  • People who have had to leave their homes through mental or physical infirmity (for example, an elderly person who has moved into a nursing home)
  • Residential properties owned by the Government, the HSE or a charity
  • Residential properties to which commercial rates apply
  • Homeowners on mortgage interest supplement

Households will have three months to pay if they choose to pay it all in one payment. There will be late payment penalties, which range from 10 per cent up to 30 per cent, depending on how late the payment is.

The Household Charge  is an interim measure pending the introduction of a full property tax, which will apply in 2014.

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Comments (152 Comments)

  • lets penalise people who educated themselves….got a job… worked hard … bought a house… paid stamp duty…. struggling with mortgages….trying to secure a future for their kids… struggling to hold onto a job or find a job….ffs… would have been better if i left school at 15 and went on the dole ffs

    Reply
  • it’s just tax by any name they can think of, it is not linked to any service or facility, household charge is probably better spin than calling it an air breathing tax or blood pumping tax, everything is being tackled except the elephants in the room, wasteful spending in everything government and their departments do, and the gambling depts of European banks being saddled onto the backs of the irish people! You will pay until you can’t pay anymore

    Reply
  • Travors 06/12/11 #

    Shortest. Article. Ever.

    Reply
  • Its 100 now with water charges to come on top in 2014. The esri wants households to pay about 1300 on average in household taxes eventually. With 250000 with no income after living expenses and 750000 living on 70 a month according to the credit union. this tax which is the same for paupers and billionaires makes me sick and disgusted and angry.

    Reply
  • €100 this year, and it will go up and up and up over the coming years until it’s size or value based and we’re all being properly screwed with rates of 5 or 6 hundred a year. In 5 or 10 years time €100 per household will seem like nothing. Red thumb away, not in favour at all, just saying!!!

    Reply
    • spot on, but is anybody really in favour of paying any tax

      Reply
    • I’m in favour of paying taxes where there is a proper consideration, i.e. I get something in return, or those who have fallen on hard times get something from it. I am not in favour of paying taxes that in turn are paid as interest to central banks who have done precious little except print currency and demand a substantial slice of the product of our labour in return for providing this “service”. Actually, given that only 5% of the total circulation of the euro exists in physical form, most of this “service” is simply adjusting balances in a computer. While the government and their “Revenue Commissioners” act as little more than enforcers for the central banking mafia, I will continue to view taxation as government-approved theft.

      Reply
    • it might seem like a trivial service, but unfortunately we have gotten ourselves into such a bind that we have no other option but to avail of and pay for it.

      Reply
    • We have gotten ourselves into a bind? Who is WE? Don’t for a moment think that you can collectivise the actions of the banks. I don’t have any responsibility for them, nor am I willing to assume them.

      What has happened is that the debts of banks onto the people is has been added to our previously quite insignificant sovereign debt. In international law, a national debt incurred for purposes that do not serve the best interests of the nation is termed odious debt and is not enforceable.

      Remember, the privatisation of profit and socialisation of loss is right at the core of the fascist economic system. What Fine Gael have done in refusing to do as they promised before they were elected (burning the bondholders) and what Fianna Fail did before them (accepting private bank debt as sovereign debt) is fascism.

      Reply
    • @Tom Sullivan; afraid we have collectivised things Tom and like it or not we are all going to have to deal with it. thats the system in this country, the only say we have is our vote and enough people choose to use their in such a way that this is where we find ourselves today. the only way not to participate is emigration or to go ferral and live in a burrow. but i’m sure some charge or licence fee will kick in somewhere along the line also.

      you’re spot on re the function of the revenue commissioners. that’s exactly what they are for, at the governments Behest

      Reply
  • It’s not the payment itself, it’s the requirement to sign yourself up to be fleeced at whatever rate it climbs to in property tax, AND to be eventually sold on to privateers as a customer of Irish Water Ltd. Signing up for €100 is their foot into my door, and my wallet, forever.

    When they realise this charge is uncollectible, and that it has rendered a large number of otherwise law abiding citizens ungovernable, perhaps then they will revisit the plan favoured by 82% of Irish people. Tax wealth in a meaningful way. And end the impoverishment of our children in order to enable bondholders and investors to indulge their gambling habits with impunity.

    Reply
  • What will this revenue cover? I mean is it for something like improving footpaths / road maintenance or is it just to boost the coffers?
    The arrogance of telling us it is being introduced but not what the revenue is to be used for is what annoys me.

    Reply
  • The usual crap from the government were they say they can’t start at the top because it would be “to hard” so we’ll start on the bottom. Why don’t a couple of our overpaid politician and elite civil servants take a trip up to howth head, foxrock , blackrock ailesbury rd, merrion rd any trophy houses knock on the door and give them a property tax bill for a start

    Reply
  • They have no right just to implement an household tax without a clear explanation of what it’s about and on what element of our household they are taxing us!! This is just blatant robbery!

    Digusted!

    Reply
    • In the past before 1977 everyone who owned their home paid rates and Jack lynch bought the electorate off by abolishing domestic rates and before then it was obligatory and as far as I can remember quite high. This is a return to rates by another name.

      Reply
    • they have every right, they are the democratically elected government acting within the constitution. It’s about raising revenue. They are taxing every element of your hous, whatever that means, yeah, it’s robbery, suck it up

      Reply
  • In reply to Killian Maher.this has nothing to do with tax evasion-that’s BS- this is a case of double taxation- which is definitely open to a legal challange….afterall..we paid stamp duty on our houses when we bought them..so this is a classic case of double taxation.

    Reply
  • Owners – rather than occupiers – of the household will be liable for the charge.
    Hmmm
    The bank owns my house, if I don’t pay my mortgage the bank will take it off me, I don’t own it until I have paid for it in full. :-)

    Reply
  • made 06/12/11 #

    Well by the time the vat increase the motor tax increase and the fuel increase come in to effect I won’t have anything left so I won’t be able to pay the household charge. Enda will just have to ask his mate for the ?35000 increase back and return the ?17million they have given themselves in extra expenses.

    Reply
  • What will happen if you refuse to pay it.

    Reply
  • Fear. Yes that’s the hope they have that people will pay. That same old Irish trait from yesteryear of evoking fear into every man woman and child. Stand firm with your justified and moral code of fairness and tell them go shove it.They cant beat mass determination. Just tell them If they burn some of those responsible you’ll think about it.

    Reply
  • If we accept paying less then €2 a week now, do you think it will still be less then €2 a week the year after or two years from now? what will you do if and when it comes to €20 a month or more then that? its obvious the €100 a year charge is only a foot in the door tactic to get people to say that,s not much I can afford that, once you say that and accept it, just watch as the goverment rack up the property tax each and every year afterwards.

    Its time to now to take a stand and refuse to pay any property tax, if we don,t do it now, we will look back in a good few years time when property tax could be say €1000 a year and wonder why didn,t we resist when they tried to get a foot in the door?

    In regards to the property tax, for anyone that,s opposed to it, there is a national boycott campaign being built that,s underway, we have already held many succesful meetings around the country in galway,cork,waterford, donegal, kilkenny, …where the majority who have attended these meetings have agreed non payment is the only way to go,and remember if you decide to boycott it and not pay it, you won,t be by any means on your own, there are others like minded people who feel the same way, who have signed up to this campaign, check your local newspapers for meetings in your local area,further info check http://nohouseholdtax.org/

    Reply
  • It shows the contempt that FG hold us to think this is the right time to introduce such a charge.

    Negative equity! Mortgage defaults! Mortgage arrears! Why not screw the screw in tighter and introduce another charge.

    Do not pay. Tell everyone you know not to pay.

    Reply
    • I have Reada. Only had two people say they are going to pay so far. I just hope people realise how much this tax will rise by 2014 and that the €100 charge will be used to pay councils to collect info on property.

      Reply
  • @ Norman….ehh €2 to start with. Easily a grand within 5 years. This us definitely open to a leal challange…we paid stamp duty on our homes so this could be classed as a double taxation.

    Reply
  • Not one person who voted Fine Gael can give out about the screwing they’re giving us. All their big election talk that secured them votes has gone down the shitter.

    Reply
  • Ciaro 06/12/11 #

    It’s not a tax, it’s an easy way to compile a property register. When paying this money you will be asked name, address, no of bedrooms, type of house, etc, all the information required to impose a value based tax. Don’t pay won’t pay.

    Reply
  • No one!!!

    Reply
  • Martin ????????????????.If the money is for vital local services ,then what the fuck has the value of a persons house got to do with paying for the same service.
    As for motor tax as you so brilliantly pointed out ,the money is supposedly been collected for road maintenance
    and greener cars are rewarded by paying lower tax.However a small nissan micra which does 15000 mpa
    pays less tax than a 2 litre merc which only does 1 or 2000 mpa.
    My point is,and just for you co’s your obviously related to Homer Simpson theres no logic to their tax system.
    If the motor tax was abolished and the tax was put on fuel, those who use their cars the most would pay the most

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    • can you not ask a question without bad language. The idea of paying relative to the value of the house is something on the lines of the more you’re worth the more you pay. i keep people hearing that the better offshould pay more, this is what the wanted.

      other than that i have no great interest in duscussing anything with hard of understanding juveniles, ciao

      Reply
    • Negative equity . Thats where most people are now ,so by your logic most wont have to pay .I have a car and a big tv which I also paid tax on when I bought , maybe I should be assessed on these also ,ah what the hell why dont we just let some overpaid civil servant into our houses so they can evaluate everything we own even the stuff were still paying for like our house, oh I forgot we would need another 100,000 more civil servants for that.

      Reply
    • The motor tax was abolished a number of years ago and put on fuel. Then it was reintroduced as vehicle registration fee and escalated from there. The tax on fuel was never rescinded.

      Reply
  • Burn some of those responsible and I may consider it. Until then they can take a hike

    Reply
  • I refuse to pay. Funding local authorities is an outright lie. They have pulled the plug on servicing private roads in leitrim already. http://www.leitrimobserver.ie/news/local/massive_blow_as_roads_scheme_cut_1_3316769
    Also this week was also very cold here in the north west, they can’t even grit the roads, I travel into northern Ireland every day and up here roads are gritted every morning and afternoon without fail for the last eight years. The roads serviced are both primary and secondary and are coated twice a day in my experience for the last eight years. The worst driving conditions I have to drive each winter is the two miles from house to the border and from the border to work( in the south). It’s extremely frustrating.

    Reply
  • Dave 06/12/11 #

    When it arrives in the post, write in red ink “NO CONTRACT – RETURN TO SENDER”

    Reply
  • we pay car tax to cover roads,bin tax for rubbish removal,other taxes for heaith and such ,what are these VITAL LOCAL services ? are they going to mow my lawn or paint my house .This tax will be 1000 a year within 5yrs

    Reply
  • Nobody!

    Reply
  • When freeloaders in social housing pay . . . . Then I’ll pay !

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  • Well Im not paying it. The government takes enough money off me and my husband each week. They are not getting any more.

    Reply
  • I don’t want to pay , I don’t see why we tax payers should again have to pay more tax. I want to know where this money will go to . Out of fear I probably will pay ..How ? I have no idea…

    Reply
  • I forget which year the uk council tax was introduced after the disastrous poll tax. Our 2 bedroom semi was banded B. Our old rates were in the region of £260 p.a. prior to council tax. Every year the tax went up, from £400p.a. to, by 2007 , 0ver £1100 p.a. The council, each year, reduced its services. If you didnt pay you were taken to court n fined, or ended up in prison, but on coming out having served whatever mandatory sentence you were still expected to pay in full.
    The councils were hugely in favour of getting the money thru Direct Debit. Overall one had 10 monthly payments so in fact one was always paying in advance as February n March were “free”. The new financial year begins in April. The April payment was usually bigger so that the remaining amount was easily divisible by 9.
    The 100 euro charge is the thin end of the wedge. You have been warned.
    I dread to think how much the charge will become on all these 4 n 5 bedroomed houses here.
    We are renting and have lovely landlord/lady so hope they wont feel pressurised into increasing our rent. There was no mention about the 200 euro charge on second n subsequent homes being abolished.
    General outlook don’t look good.

    Reply
  • everyone should refuse to pay this. if we all stick together they will have to climb down. remember the rent strike in Dublin in the 80s? this fight can be won the same way.

    when rates were abolished they said the money would come from vAT. that has just gone up 2% so they have their Feckin property charge already!

    Reply
  • I’ve said it before and ill say it again and again and again and again…..I AM NOT PAYING. Dont care how much put how little.

    Reply
  • If my landlord tries to get me to pay this I’ll tell him to stick it up his tóin, and if he goes back to the government and tells them to do the same, well then thats alright with me.

    Reply
  • 06/12/11 #

    where are people gonna find this money?

    Reply
  • Who pays it ? the landlord or the tenant ?

    Reply
  • @ John Nolan the threat is a ten euro month fine if you refuse to pay, but that aside if the vast majority refise to pay it-the goverment can do F all as it will be unenforaceable and will be abolished just as poll tax in Britain was.

    Reply
  • So landlords will have to pay €200 on the 2nd property that the tenant is renting, another €100 on each house (their own house, and the rented one).
    And then in a few months tenants are going to have negotiate down their rents in line with rent supplement limit which are being reviewed downwards. What is actually going to happen is rent will stay the same or go up, and the tenant will have to make up the difference. Double whammy on the tenant!

    Reply
    • Ciaro 06/12/11 #

      Tough luck on the tenant, rents are too low anyway.

      Reply
    • ^spot the landlord!!!

      Reply
    • rents are too low!! are you seriously off your head?? Tough luck on tenants???? Both my husband and I were working full time but still did not earn enough to buy our own home so we had no choice but to rent, we have BOTH been made redundant and have a son to support (who we had 5 years ago while both in a stable job) we live in a rural area but still pay €140 per week rent out of a social welfare payment that does not leave a lot to pay utilities, heat a home (electric storage heating) and put food on the table. I am grateful for the assistance we recieve until we find employment but to say “tough luck on tenants” we are struggling as it is and if it wasnt for us peasants, oops! sorry tenants, landlords would be unable to pay their mortgage.

      One must view your comment with great admiration, you must be lucky in a comfy job, lots of money and no idea whatsoever about the reality that faces Irish famalies today.

      Reply
    • No radical thinking by this government. Same record, different DJs. This budget like every one before it is obsessed with ‘stimulating’ property transactions. One of the main reasons why things are as bad as they are is due to similar policies. The government should concentrate on making property unattractive to invest in for the next five years except for home purchasers. A reworked and expanded BES should be considered as one option for redirecting cash away from property. You can’t export houses, apartment blocks and shopping centres. Surely they have grasped that much?

      Reply
    • EM 07/12/11 #

      Cell said Cat.

      Reply
    • EM 07/12/11 #

      Sorry, WELL said Cat.

      Reply
  • The government-funded research institute, the National Institute for Regional and Spatial Analysis (NIRSA) defines a ghost estate as “a development of ten houses or more in which fifty per cent or less of homes are occupied or completed”. Doesn’t include unbuilt houses so you can live in an unfinished abandoned building site but as long as 50% of those house that were actually built are occupied, you dont qualify. Classic example is Oughteranny estate in kilcock, was originally meant to be 400 houses, ended up been about 100, 20 of them are unfinished/ empty, abandoned rubble and building materials all over the place but according to the government, its not a ghost estate.

    Reply
  • For everyone against the household charge/property tax, please share this link on your facebook wall and ask all your friends to sign up to this campaign, we shall be stronger in numbers.

    http://www.nohouseholdtax.org/

    Reply
  • @Ciaro Re your comment ‘You are better off financially with a child or two, in rented accommodation, lone parents allowance with your fella living with you, he’s on job seekers’……
    I am living in rented accommodation, have 3 children, am a single parent and NOT on lone parent nor any payment/allowance, nor do I have a fella living with me, I work bloody hard, commute long distance to get to and from work, my poor kids spend far too much time in childcare ,,,disposable income I think not!!… I am constantly in the red, living on my overdraft! you have no idea me thinks, don’t judge people!

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    • Well said maria. Too easy to generalize a group in society and label them as spongers. May be true in some cases but not in the numbers we are led to believe. Most people work hard and get by.

      Reply
  • Not much to laugh about with this budget but – “fund vital local services” – made me LOL

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  • I hope folks will not pay this. If we ain’t going to march on streets this is one where we can give the fingers to bank bailout tax. As it should be really called.100 euro or punts today will be 2k in a few years.

    Reply
  • Sorry but “mooted…. in July”. Not correct. This was a condition of the troika bailout program of November 2010. Not something pulled out of a hat during the summer.

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    • Mmm………. n I remember it was also stated that the 100 euro property tax will stand for 2012 n 2013 by which time “they” will have come up with a fairer system to charge more to those that have bigger homes.

      Reply
  • The house in the pic has no chimney

    Reply
  • Not me

    Reply
  • The Budget declared that the charge, which is being introduced to “fund vital local services” will be introduced in 2012 and is expected to raise some €160 million per year.
    The charge will stay in place until a valuation-based property tax replaces it, as agreed with the EU-IMF.
    Q.Why should owners pay different charges if it is to “fund vital local services”.

    Reply
  • @ John are you going to sign up to the can,t pay/won,t pay campaign? stronger in numbers.

    http://www.nohouseholdtax.org/

    Reply
  • Hi LInda that,s good to hear, please sign up to this campaign and register your details
    http://www.nohouseholdtax.org/

    Reply
  • just a question who will pay the 100 euro for people renting and on social? the government? paying its own tax 2 solve its own countries debt…………pppfffft!

    Reply
  • David 06/12/11 #

    I’m glad to pay it. I think it’s more fair than just always taxing employment and workers. I think it is good to spread the tax burden instead of always hitting the worker, investor, and basically the people making the effort.

    Reply
    • Now there’s something that’s going to go down really well in these quarters

      Reply
    • Yeah David. Cos people who have bought their own homes and paid ridiculous amounts of stamp duty haven’t contributed at all. Grow up.

      Reply
    • David 06/12/11 #

      @ réada – What people paid ridiculous amount of stamp duty on their homes? All first time buyers had a stamp duty exemption so it was just trader uppers and they mostly had alot of equity built up from the house they sold. Or it was investors to whom this charge does not apply. So maybe you should grow up because you can’t have everything your own way.

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    • @ David, first time buyers were only exempt from stamp duty on new builds, not second hand homes. This changed to include second hand homes in 2006 as far as I remember. Prior to 2006 this led to the majority of young couples being forced out into the commuter belt as these were the only areas that new houses were being built and that they could afford(on newly rezoned land)…these houses were largely thrown up with little or no enforcement of any building regulations leaving an entire generation with a legacy of a mortgage to pay to banks on houses which were ‘self certified’ at best and now we see the repercussions eg. the pyrite epidemic and Priory Hall.

      Reply
    • Thanks Niamh for telling David. I’m exhausted trying to wake everyone up. And this was meant to be my day off…

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    • I did David and many others like me. How did you think they were able to reduce income tax so much during the boom years? They were raking it in from stamp duty. I won’t answer you again seeing as I’m talking from my “hole” as you so vulgarly put it. Play the ball not the man, or woman in this case.

      Reply
    • David 07/12/11 #

      @ Réada – I’ll answer it then. It was speculators, trader uppers, commercial property buyers and very few first time buyers who paid “ridiculous amounts of stamp duty”.

      Reply
    • David, on every €100,000 paid for a home by a first time buyer €16,000 is paid to whichever relevant authority for water connections, roads within estates ect, now we have to pay again.

      Reply
    • David first time buyers paid €16,000 in every €100,000 on price paid for a house to whichever relevant local authority during the so called ‘ boom’ for services such as water connections, estate roads ect. Now we have to pay again.

      Reply
    • Has it ever occurred to you, David, that there is already enough of a tax burden if not too much? The country shouldn’t take up to 50% of incomes to run. In reality, much of what we pay in tax goes to privately-run central banks who provide a very expensive service of printing banknotes and adjusting balances on a computer.

      Reply
  • I dont care if I had a house and I had to pay 2 euro a week extra in tax. In the Netherlands you pay 4 taxes on your house. It is what it is. What bothers me is that the fuckers (landlords, every single one of them) will pass this on to the tenant. They own 2 or more houses. Have other people pay their mortgage, cash in on the house in 30 years, yet still cry murder when they get taxed. Ow they have it so bad. Screw them. You bought a second house in the booming years. Now it bites them in the ass and they play the victim card. Sod off.

    Reply
    • Solution = buy your own . It will boost the economy too .:)

      Reply
    • Ciaro 06/12/11 #

      If there were no landlords there would be no rental property. Grow up!

      Reply
    • Ciaro 06/12/11 #

      Ron, you’re a dickhead if I’m a fucker.
      I bought a property to give me a pension when I retire ( self employed). It’s costing me €500 a month, I have to earn about €1000 before tax to get this. I paid my stamp duty, NPPR, PTRB. I’m not complaining, my choice, my consequences.

      Don’t assume all people are the same.

      Reply
    • That’s a very glib uncaring statment eileen, what about those that Cannot get a mortgage?

      Reply
    • @ Eileen, I owned a house and sold it. Lucky me.

      @ Cairo, I dont mind being a dickhead. At least I can sleep at night. I have been in the country for 5 years and had 6 different landlords, I know what I am talking about. Greedy bastards, asking 900 euros for a dump. And you can ask anyone else out there about their landlord, what they think of them. My friends sure dont have a high opinion of landlords. Sure there are a few maybe, but those are the exception to the rule.

      I dont mind people having two houses and rent one out, thats not the point I am making. But people here are landlords when they cant afford to be one. They rely solely on the tenant to pay their mortgage. So when the shit hits the fan they are in trouble and cry murder. But you didnt hear them when they purchased their second house and thought that their was no end to their wealth. Well, they figured wrong and now they act like they have it bad. Give me a break.

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    • anyone that sold their house for a profit is a really greedy bastard

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    • @ Martin, where in the hell did you get that from?? Dont put words in my mouth and dont try to be smart… you arent.

      Reply
  • @ RON: well said :)

    Reply
  • As a renter I would nearly prefer to pay it directly myself. By the time my Landlord increases my rent I will pay more than €100. I don’t get how they will use ESB to figure out who to chase as they don’t know if I rent or own

    Reply
  • I think they are building it into the electric bill at €8 and a bit a month

    Reply

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