Council says no property tax hit for its tenants

DUN Laoghaire Rathdown County Council has rejected a suggestion that its tenants could face rent increases to pay for the new property tax that householders will be liable for later this year.

Approximately 1.6 million households will become liable for the new property tax when it comes into force in July. Householders will have to file a self-assessment of how much they think their property is worth to the Revenue Commissioners by May.

In March householders will receive information from the Revenue regarding its own estimate as to how much they think the property is worth. The Revenue Commissioners have said that householders who do not make a self-assessment could face court action and that interest and penalties may also apply.

At a meeting of the council in December to discuss the local authority’s budget for 2013, Cllr Victor Boyhan (Ind) asked council officials to clarify whether its tenants would face rent increases to meet the cost of the new tax.

“It is clear that this local authority is liable for in and around 4,000 houses,

? Cllr Boyhan said.

“We need clarity on this issue. I say to the manager: are you going to pay it out of [council] reserves or are you going to pass it on to rents? I want to know what the intentions are because the public needs to know and they expect to be told.

?

In response, Helena Cunningham, director of finance at the council, said:

“There is no current legal requirement to make that provision [for the property tax]. If it becomes law and we have to pay, it will be paid, but no decision has been made as to how it will be funded.

“It may be that we will get funding, but certainly no decision has been made that it will be passed on to the tenants.

?

Last week, a council spokesperson added:

“In the event that the council is liable, it is not correct to state that tenants will have to pay. No decision has been made in relation to who will pay. The council’s Local Government Fund grant allocation may be increased to cover the amount due even if the council is liable.

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