WITH the 2014 Local Elections just over one year away, the Government’s handling of the property tax issue could well blow up in the faces of Labour and Fine Gael candidates.
It’s for another day, perhaps, to argue the merits or otherwise of a Local Property Tax (LPT) given the perilous state of the country’s finances. The real and immediate problem for the Government in selling this tax to the public is the issue of exemptions.
Some of those living in ghost estates who qualified for exemptions for the
?¬100 household charge last year – the precursor to the full property tax – now find themselves liable 12 months later. This is because the criteria applied in determining what exactly constitutes a ghost estate seems to have been changed to suit the Government’s revenue raising requirements.
Light-touch regulation in this country resulted in thousands of people unwittingly and unknowingly buying defective properties. Many bought at the height of the so-called boom for sums that now seem only relevant to Monopoly game boards and they find themselves in negative equity, living in homes barely fit for habitation.
Many householders affected by pyrite will qualify for a property tax exemption, depending on the extent of damage to their homes. But what about those who were lucky enough to have their pyrite-riddled properties repaired?
Certain insurance companies put the onus on these householders to first prove they were living in damaged properties that were built using unsuitable infill material. This meant an outlay of thousands of euro for ground testing and structural engineer reports. Some residents struggled to find the money to have these tests carried out.
To recoup these
‘uninsured losses’ – as underwriters like to refer to them – some homeowners have been advised that they can take legal action against those allegedly responsible for pyrite ending up under their floors.
The establishment of the Pyrite Resolution Board has certainly been seen as a step in the right direction for those affected by the problem and whose damaged properties have yet to be remediated. For this, the Government deserves some credit.
But for those who have been to hell and back in having their homes repaired – either by the original developer or an insurance company – the new property tax is yet another kick in the teeth and a financial burden too far.
Yes, the problem of pyrite, ghost estates and firetrap homes are legacy issues inherited by the current Government. But how fairly or not Fine Gael and Labour treat those affected by the sins and omissions of others will undoubtedly affect the outcome of the 2014 Local Elections.
They have just one year to get it right.