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Five-year property tax freeze on cards

THE Government is considering freezing property tax valuations for five years in the upcoming Budget as a measure to offset rising house prices.

With property prices spiralling, homeowners would face substantially larger property tax bills when houses are revalued in 2016.

However, the Cabinet is weighing up whether to announce a property tax freeze in Budget 2015.

delaying

Finance Minister Michael Noonan and Public Spending Minister Brendan Howlin have already discussed delaying the revaluation period until there is a "bedding down" of the property market.

He said that raised the question "whether the current timeline is appropriate or not".

Mr Howlin said: "It is a matter for the Minister for Finance and it is something I know that he will be considering between now and the Budget."

A lack of supply is continuing to push prices up.

The average cost of a Dublin home now stands at €349,000, up 24.4pc in a year.

As a result, homeowners in the capital would already be paying an extra €90 in property tax after a revaluation.

A household's property tax bill is based on two factors - the valuation of the house, and the rate of tax which will partly be set by councils.

In terms of valuation, the property tax to be paid from 2013 to 2016 was based on how much the house was worth on May 1, 2013.

But that valuation period runs out at the end of 2016. As things stand, it means the property tax payable in 2017 will be based on the property value on November 1, 2016.

hnews@herald.ie


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