Property tax warning is issued

A NORTHSIDE TD has warned that any increase in Local Property Tax (LPT) would be unjust on Fingal homeowners and should therefore not feature as part of a review expected in the coming months.

Dublin Fingal TD Darragh O’Brien (FF) said he was pleased to have an input into the Fianna Fáil submission to the review of the tax earlier this year. He said it gave him the opportunity to share the concerns of local homeowners. 

“It is clear that there is absolutely no capacity for households in Dublin Fingal to take an increase in the Local Property Tax,” said Deputy O’Brien.

“I have been firm in my commitment to working to ensure that no extra tax burden is imposed on Fingal homeowners and that the current rate of property tax should remain unchanged.

“Given the detrimental impact that pyrite has had on thousands of homes across Fingal, it is only right that the homes included in the pyrite scheme are exempt from paying a property tax.

Deputy O’Brien, his party’s housing spokesperson, said it was also crucial that councillors “make a greater contribution to how the tax take is allocated locally”. 

“People in the area rely on their feedback and input,” he added. 

“I intend doing my utmost to prevent any hike in LPT tax for homeowners in the north county.”

Orla Mulligan, who lives in Dublin 13, said the property tax based on house value is an unfair system.

“It disregards ability to pay and household size,” she told Northside People.  

“For a pensioner living alone with a fixed income or people on low incomes, it takes no account of circumstances.  

“I understand that local services have to be paid for but property tax seems like an unreliable source if it’s based on current market value.  

“It always unfairly targets people in Dublin with a fairly ordinary three-bed semi paying more then a (homeowner) with a detached five-bed in a rural area. Between this and USC, it’s a tax too far.” Simone Corvin, from Malahide, also believes it would be unfair to raise the property tax.

“I think there should be an additional consideration given to whether your property is rural or urban,” said Ms Corvin. 

“Currently taxes are even across the country but governmental spend is not evenly distributed.”  

A spokesperson for the Department of Finance said that, as the review is currently ongoing, it won’t be commenting on the detail at this time. 

In January, Minister for Finance, Paschal Donohoe, announced details of the review. Its purpose will be to inform the Minister in relation to any actions he may recommend to Government concerning the overall yield from LPT and its contribution to total tax revenue.

When announcing the review, Minister Donohoe said: “Even though it would be 2020 before LPT liabilities would be affected by any property revaluations, it is important that the Government is able to make its position clear in relation to LPT in a timely way so that households will be aware of its plans for the tax in advance of the November 2019 revaluation date and the associated 2020 and beyond LPT liabilities. 

“The current review of the LPT will be informed by the principle of achieving relative stability in the LPT payments of those liable for the tax and provide clear direction on the likely payments faced by households in 2020.”

The review, being conducted by a cross-departmental group, chaired by the Department of Finance and comprising the Revenue Commissioners and the Departments of the Taoiseach, Public Expenditure & Reform and Housing, Planning & Local Government, will be completed by the end of August.

The Local Property Tax came into effect on July 1, 2013 and is collected by the Revenue Commissioners.