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Plan to freeze rates on home tax bombshell

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Michael Noonan: performance is evidence of recovery

Michael Noonan: performance is evidence of recovery

Michael Noonan: performance is evidence of recovery

FINANCE Minister Michael Noonan is considering the introduction of a freeze on property tax revaluations amid fears a rise in bills could severely damage the Coalition’s popularity in Dublin.

The move has been called for by TDs in both Fine Gael and Labour in response to spiralling property prices.

A household’s property tax bill is calculated on a number of different tax rates according to the value of the house. The local councils can reduce the rates by up to 15pc from next year, but only if they have enough funding.

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.

The potential impact that this may have on the support of government parties has caused concern among backbenchers. It is now understood that Mr Noonan is reviewing the matter and is expected to make a “definitive statement” in the coming weeks, a government source said. Health Minister Leo Varadkar hinted that a policy change is on the cards.

And Fine Gael TD for Dublin North Alan Farrell said he expects Mr Noonan to make legislative changes in the coming months.

“There is an obvious need to review the Local Property Tax  in advance of the revaluation date which Mr Noonan has both alluded to in the Dail and discussed with myself,” he said.

noconnor@herald.ie


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