independent

Wednesday 23 April 2014

What the budget means to Kerry

COUNCIL SET FOR WINDFALL FROM NOONAN'S NEW TAX

YOUR MONEY. YOUR CHOICES: A good relationship with money can lay the cornerstone to a healthy financial future (or certainly a healthier one that where money is treated badly).

THE controversial new property tax could be worth almost €20 million a year to Kerry County Council when it is fully introduced.

The property tax, which comes into effect from July 2013, will replace the household charge and is designed to eventually become the main funding mechanism for local authorities.

County Councils will receive the bulk of property tax monies collected in the respective areas and will, eventually, gain powers to raise or lower the property tax rate in their county by 15 per cent, according to their funding requirements.

While the exact details of the tax will not be known until early 2013 the tax, as announced, has the potential to bring in close to €20 million a year in Kerry.

According to figures from the 2011 census there are at least 63,230 properties in county kerry whose owners will be eligible for the tax from next July.

Assuming the average price of a house in Kerry is €156,091, as was claimed in the latest Daft.ie housing report, this would mean these Kerry properties would owe an average of €315 per year in property taxes. That represents an annual property tax take of €19.9 million a year in Kerry alone, assuming all eligible property owners comply with the tax.

Given the high payment rate of the household charge in Kerry it appears likely that the majority of homeowners in the county will agree to pay the tax which will be collected by Revenue.

With the property tax only coming into effect in July next year Kerry County Council could expect to receive around €9.9 million form the tax in the second half of 2013.

As Kerry County Council is itself a property owner, with around 4,100 houses scattered around the county, it is also eligible to pay the tax and, at the rates discussed above, would face a property tax bill of up to €1.3 million a year or around €650,000 in 2013.

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