MINISTER for Finance, Paschal Donohoe TD has today published the Heads of the Finance (Local Property Tax) (Amendment) Bill 2021 following approval from Government at the Cabinet meeting yesterday.
But what does it mean for homeowners in Cork?
The Bill will give effect to a package of measures in line with the Programme for Government to address the future of the Local Property Tax (LPT).
It will provide that property valuations will now be reviewed every four years rather than the current three years, and will facilitate the regular addition of new properties into the LPT.
Under the proposed changes to the regime, the majority of homeowners are likely to see no change or a decrease in the amount they pay, the Minister has said.
New properties will be brought into the system each November while owners of properties built since 2013 will now also pay the tax.
The number of properties built since 2013 to be brought into the charge is estimated to be in the region of 100,000.
Under the changes, the rate of the tax is to be cut and the bands will be widened in order to make the changes affordable.
This means that the majority of homeowners are likely to see either a decrease or no change.
Minister Donohoe has said that where increases arise, the majority will be by a single band, or €90, notwithstanding significant increases in property values since 2013.
The new approach maintains the number of bands at 20.
Band 1 is expanded from €1 to €200,000 with a charge of €90 and Band 2 contains values in the range €200,000 to €262,500 with a change of €225.
Speaking today following the publication of the Heads of the Finance (Local Property Tax) (Amendment) Bill, Minister Donohoe said that most homeowners will not face an increase.
“The Programme for Government includes a commitment to bring forward legislation in relation to the Local Property Tax on the basis of fairness and that most homeowners will not face an increase in their Local Property Tax liability.
“Together with my Government colleagues, I’ve worked to find an approach that will deliver on our commitment in relation to this tax which is that most homeowners will not face an increase.”
He said that this has been the focus of his discussions with ministerial colleagues.