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Thursday 2 October 2014

City dwellers will pay almost half of total take from charge on homes

Published 07/12/2012 | 05:00

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City dwellers will end up paying almost half – 45.4pc – of the country's total property tax take, an analysis by the Irish Independent reveals.

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Dublin city dwellers are likely to pay an average property tax rate of €405 compared with their rural counterparts who will pay an average of €249.

This means that the capital's 466,461 households will pay €188.9m – or 39pc of the entire projected property tax take.

Residents in the cities of Cork, Waterford and Galway will pay an average rate of €315.

The cheapest rates of property tax will be paid on homes in in Longford. This is the only county where the average house price is below €100,000 resulting in a tax of just €90.

In contrast, south Co Dublin residents will face an annual bill of €585, making it the most expensive location in Ireland for property tax rates.

Four out of Dublin's six regions will pay rates of €405 or more, while dwellers in west Co Dublin will face a bill of €315 on average. This is still way above the average rate of €249 being paid in rural areas.

Roland O'Connell, president of the Society of Chartered Surveyors Ireland, says city dwellers could end up paying close to 50pc of the total tax because it will be easier to pay less in rural areas.

Comparisons

"Fewer homes are sold in rural locations, therefore there are less examples by which to value them," he said.

"It's still extremely hard to value a home in a rural area. But if someone did want to undervalue their property, then the lack of comparisons and the huge variation in property types means it will be much easier to do so in rural areas.

"They are also sold far less often on the open market, so there is less of a chance for the Revenue Commissioners to catch anomalies at point of sale," he added.

Irish Independent

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