Property Tax

Introduction

Water Policy

A new Local Property Tax will be introduced in July 2013. This will help bridge the gap between government revenues and expenditures. A property tax is more employment-friendly than further increases in income taxes. And the property tax will exert a stabilising influence on the economy and the public finances.

This section considers the issues that arise in designing a property tax.

Highlights

Property Tax – Why Dubliners Should Pay More

Some people have complained that the residential property tax, that will be based on the market value of the property, will be unfair to Dubliners, because property values are higher there than elsewhere in Ireland. Find out why we believe it is only fair that Dubliners pay more in property tax.

The New Property Tax

A review of the proposed residential property tax that will replace the household charge from 1 July, 2013. While the introduction of the property tax as recommended will improve the fairness of the tax system, it fails to properly account for any outstanding mortgage debt.

Does Ireland Need A Property Tax?

The proposed property tax for Ireland and how we need to find the right mix of taxes to meet our borrowing requirements. Sean Moriarty, former Head Tax Administration at OECD speaks out.

Our Analysis

Property Tax - Why Dubliners Should Pay More.

(January 19, 2013)

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Some have complained that the residential property tax that will be applied in Ireland from 2013, which will be based on the market value of the property, will be unfair to Dubliners, because property values are higher there than elsewhere in Ireland. The value of the 298 properties sold in Dundrum, County Dublin are compared with the value of the 25 properties sold in Dundrum, County Tipperary, over the 2010-2012 period, using the Residential Property Price Register (RPPR). The median value (and associated full-year property tax in brackets) for Dundrum, County Tipperary are €100,001-150,000 (€225); the equivalent for Dundrum, County Dublin are €350,001-400,000 (€675); the median property owners in County Dublin will pay €450 more in annual property than their counterparts in County Tipperary. But the former have manifold advantages over the latter, including easy access to tax-payer subsidised infrastructure and services in: transport, culture, sports, education, health; and the widest range of life style possibilities, job options and entrepreneurial potential on the island. These benefits are reflected in property prices and therefore in property taxes; this is fair and appropriate. The timeliness and transparency of the property price evidence available on the RPPR is impressive, as is the quality and clarity of the background information and responses to ‘Frequently Asked Questions’ provided by the Revenue Commissioners. One weakness is that the price is not converted into price per M2. This gap should be corrected as a matter of urgency. The data, combined with the Revenue Commissioners’ ability to nudge us towards compliance with a variety of soft and hard measures, make it likely that most of us will comply.