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Ireland Budget: Local Property Tax Introduced - From Beeb


kev-all-in
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As per title, the beeb are reporting Ireland has introduced a property tax of 0.18% on the value of homes up to 1 million euros, and a hefty 0.25% on the value over 1 million euros.

It will be very intesting to see how this pans out - devil will be in the detail I guess.

If it's successful it would surely add to calls for a LVT / something similar here, which is loooong overdue IMPO.

B)

link:

Ireland budget: Local property tax introduced

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From Michael Noonan's statement (my bold):

The main features of the tax are as follows:

It will be collected by the Revenue Commissioners

Owners of residential properties, including rental properties, will be responsible for payment of the tax.

The tax will be payable on the basis of the market value of the property as assessed by the owner.

To aid owners, the Revenue Commissioners will provide valuation guidance to which owners can refer.

Alternatively, owners will be free to use a competent valuer. The initial valuation will be valid up

to and including 2016, which will provide three and a half years of certainty for property owners.

The rate of the tax will be 0.18 per cent of market value up to €1 million and 0.25 per cent on values

above that level. These central national rates will not be varied during the lifetime of this Government.

Properties with a value of more than €100,000 and less than €1 million will be assessed at the mid-point

of valuation band of €50,000 width - for example, properties valued between €150,001 and €200,000 will be

assessed at 0.18 per cent of €175,000. Properties below €100,000 will be assessed at 0.18 per cent of €50,000.

Properties valued over €1 million will be liable at 0.18 per cent on the first €1 million and at 0.25 per cent

on the balance, with no banding applied.

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Quite clever actually. Sets a reference point for re-sale values. Becomes a game of - what should I value it at to achieve the best overall outcome. And if they end up selling above the amount stated, then presumably the authorities should be able to go back and get the rest out of the house sale (and interest B)). Means no-one can complain about valuations etc and there isn't the costly initial setting up.

But of course, it doesn't fit the purist view of land tax.

That's what I like about it too. It puts an end to people wanting house prices to rise as they would end up paying more tax! Fantastic news.

I am sure that my landlord will look forward to paying that tax along with NSC (Social Charge) on the rent.

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How are the Irish going to cope?

I mean 0.18% on this one is 135 Euros a year....thank god it's dropped in stages from 220k in 2011 or else they would have had to pay 396 Euros a year

75k.png

It's the thin end of the wedge. Who can complain about a couple of hundred euros tax p.a.?

Before long it'll be 1.5%, 100% guaranteed.

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The problem with this tax like all others is it is an extra tax not a replacement of other taxes.

As for it being a low amount this is the old bait and switch tactic, people accept the tax as it is so low then once it is in place rates get ramped. Its like income tax that was introduced to pay for wars and has now morphed into a monster with its evil twin national insurance.

Edited by Ulfar
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Here come da jackboot:

"The Revenue Commissioners are required to establish a register of all residential property in the state and its ownership, and assign a unique identifier number to each property.

The Bill also gives Revenue powers to require statements from third parties such as management and letting companies, lessees or occupiers of property, giving details about the property including who actually owns it."

http://www.rte.ie/news/2012/1207/new-property-tax-bill-gives-revenue-more-powers-business.html

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It's the thin end of the wedge. Who can complain about a couple of hundred euros tax p.a.?

Before long it'll be 1.5%, 100% guaranteed.

Exactly - but the majority of people are naive idiots who will accept a new tax if it's small enough, not realising that once it has been established it will only grow and grow.

(The same principle that politicians use to introduce any changes which wouldn't be approved by the public at large. A little at a time and even if it does get rejected, bring it back under a different name later on until you get what you want.)

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