TD wants property tax link to inflation
The growing unease in Fine Gael over property tax has spread to rural constituencies, with a TD from the Taoiseach's home county calling for the charge to be linked to inflation.
Mayo TD Michelle Mulherin put a motion before the Fine Gael parliamentary party proposing that future charges be linked to the average rate of inflation over three years, and based on the current self-assessment property taxes rates.
The Fine Gael deputy insisted the property tax should only be changed every three years.
"There are fundamental problems with our property tax model, and I have been raising my concerns since before property tax was introduced," she said.
"The difficulty lies in the manner a property owner's liability is calculated, which is too simplistically linked with the market value of the property and affected by the often extreme fluctuations in the market, which we are witnessing now in some areas in particular."
Her motion was not voted on, but Minister Noonan agreed to consider the proposal as part of a consultation process examining the property tax problem ahead of the next budget.
Meanwhile, former Junior Minister and Dublin Central TD Joe Costello yesterday branded the controversial tax a "charge on Dubliners".
Mr Costello also insisted all property tax collected in Dublin should be spent by local authorities in the capital and not used to make up funding shortfalls in rural county councils.
"We have to address what is being paid by people in Dublin.
"The way it is now it is not a property tax or a local tax it is a Dublin tax -and there are a lot of areas where people can't afford it.
"House values in Dublin intend to lead the way by a mile. It wasn't an issue when it was first introduced because property values were rock bottom, but now it's rapidly becoming a problem."