Fears that local property tax could go through the roof

THE government is being urged to freeze the revaluation of homes for the local Property tax (lPt) until 2020.

Senator Darragh O’Brien, Fianna Fáil’s candidate in Dublin Fingal for the general election, warned that Dubliners are facing property tax hikes of between

?¬400 and

?¬500 in their property tax bills under the home revaluation process due next year,

The Department of Finance confirmed to Northside People that a review is currently being conducted and will be presented to Minister Michael Noonan before the end of the summer.

It said the Minister has given a

“firm commitment

? to examining any impacts on LPT liabilities due to increasing property prices.

Senator O’Brien pointed out that Dublin house prices have jumped by an average of 40 per cent since 2013 when the Government introduced a property tax system based on home values.

“The current property tax system, based solely on property values, discriminates heavily against Dublin homeowners who are forced to pay multiples of the tax paid by people in larger houses outside Dublin,

? he argued.

“I have warned from the start that this is an anti-urban, anti-Dublin system and the looming hikes prove that point.

“It is crazy to expect Dublin homeowners who are in negative equity, struggling with massive mortgages, and have already paid hefty stamp duty to now pay a huge increase in property taxes just two years since the system was introduced. Continued from page 1

“This is why I campaigned against a system based on property value in the first place, as it is hugely unfair on Dubliners and could mean regular hikes in tax bills.

?

Fianna Fáil has made a submission to the Property Tax Review calling for a number of changes to the legislation, including:

?¢ A freeze on valuation bands until the year 2020 at which point a full review of the system will be carried out,

?¢ Property tax relief for those who are already paying property management fees, and

?¢ Lifting the burden of property tax on homeowners suffering from serious pyrite damage for three years or until the problem is remediated.

Austin McCoy, chairperson of Lorcan Estate Residents’ Association, Santry, echoed Senator O’Brien’s sentiments.

Mr McCoy is calling for a moratorium to be placed on the existing tax bands for five years.

“On the ground, people and especially senior citizens, are anxious and concerned that, as property prices rise, so too will their property tax bills,

? he told Northside People.

The initial valuation of a property on May 1, 2013 is valid until October 31, 2016. The next valuation date is November 1, 2016.

Last month, Minister Noonan, in reply to a question from Dublin Bay North TD Terence Flanagan (RENUA), said he was

“very conscious

? of homeowners’ concerns, particularly those in urban areas, regarding increasing property prices and the effects this would have on their LPT liabilities.

“With a view to addressing these concerns, I have asked former public servant, Dr Don Thornhill, to conduct a review to consider, and make recommendations, on the operation of the LPT, and any impacts on LPT liabilities due to property price developments,

? said Minister Noonan.

The Minister said the review will have regard to:

?¢ Recent residential property price developments,

?¢ The overall yield from LPT and its contribution to total tax revenue on an ongoing basis, and

?¢ The desirability of achieving relative stability, both over the short and longer terms, in LPT payments of liable persons.

Separately, Dublin City Council has invited submissions from the public and interested parties on whether they think the LPT should be varied in Dublin city.

A section of the Finance (Local Property Tax) Act 2012 allows the elected members of the city council to vary the LPT rate by plus or minus 15 per cent.

The council must ask the public for their views and take them into account before making a decision.

Anyone who wishes to participate in the public consultation process can take part in an online survey until August 5 at www.bit.ly/DublinCityCouncilLPTConsultation