Thursday 18 January 2018

'It will be interesting to see what comes in the post'

John Radford
John Radford

AUCTIONEER JOHN Radford, based in New Ross, believes that it will be very difficult for the Revenue to ascertain accurate valuations on homes for the property tax.

The local property tax, which is payable on the market value of a property, is to come into force from July and will be administered by Revenue.

In March the Revenue are to write to residential property owners. The pack will include notification of an estimated amount of local property tax, a booklet on the operation of the tax, valuation procedures and payment methods and a form for completion.

The Revenue expects people to self-assess what their property is worth and what they owe in stamp duty and suggest homeowners could base this on the register of residential property sales, published by the Property Services Regulatory Authority.

However if the Revenue believes the value of the property declared does not reflect the market value, it may question the declaration. The amount of Property Tax to be paid will be based on the market value as of May 1 this year.

John Radford, of Sherry FitzGerald Radford, feels this method of valuation could become a long, drawn out process.

'I think the public have to take a view to be honest about their opinion on the value of their home, if not it may come back to haunt them should they give a lower valuation than expected,' he said, adding that difficulties may be encountered in valuing one-off houses.

'It's grand valuing a house in an estate but for one-off houses I don't know how homeowners will handle valuing them. I think homeowners will have problems initially. It will be very, very interesting to see what we will receive in the post from the Revenue in March,' added John.

Overall, John believes the concept of a property tax makes sense, however value for money needs to be given to homeowners.

'If people are going to be charged they will need to see some benefit,' he said.

' Twenty-seven per cent of our buyers are UK based and they see our property tax to be very low but they get a lot of services for their tax, which we don't. Ours is purely a tax, not a service provider,' he added.

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