Sunday 22 October 2017

Options the Government is considering ...

Fionnan Sheahan

Fionnan Sheahan

Market Value

Based on the price of the house if it was being sold. The property tax is a percentage of the value of the house. The more the house is worth, the higher the property tax.

In a nutshell: The owner of the mansion pays more than the owner of the modest house.

Site Valuation

Based on the value of the site and ignoring the house built on it -- it takes account of the location more than the physical bricks and mortar of the house itself.

In a nutshell: A mansion and a modest house, side-by-side on similar sites, both pay the same.

Bands

Based on the price of the house, the rate of property tax applied goes up according to the market value of the house.

In a nutshell: The more the house is worth, the higher the rate of tax.

Floor Space

Based on the size of the house. The tax is applied to each square foot of floor space. The bigger the house, the higher the property tax.

In a nutshell: The owner of the mansion pays more than the owner of the modest house, as the house is bigger.

Adjusted Floor Space

Based on the size of the house but different rates of tax apply depending on the location. The more upmarket the area, the higher the property tax.

In a nutshell: With two houses of the same size in different locations, the owners pay different amounts of property tax, according to the location of the house.

Household Income

Based on the income in the house, which is an additional factor in calculating the tax to be paid.

In a nutshell: With two houses of the same size, located side-by-side, the owners pay different amounts of property tax, according to the income of the house.

Irish Independent

Editor's Choice

Also in Irish News