Increases in property tax will be affordable, Donohoe vows

ANY changes to Local Property Tax bills will be ‘moderate and affordable’, Paschal Donohoe has vowed.

This week the Finance Minister announced a review of the charge to take place before October’s budget to determine charges beyond 2019.

The tax is tied to the market value of properties, and with rising house prices, homeowners are facing steep increases in the charge levied.

Under current legislation, properties subject to LPT will be revalued in the second half of 2019 and taxes will be raised accordingly.

Fearing a backlash from voters, Government ministers are instead looking at measures that would allow local authorities to set their own rates of local property tax.

Mr Donohoe said homeowners would avoid ‘dramatic changes’ that could cause them difficulty.

He told RTÉ Radio’s Morning Ireland yesterday: ‘At the moment local authorities and councillors have the ability to vary the amount of tax that residents in their area will pay, and this is something that this process will consider.

‘My overall objective in relation to the future of property tax on our island is that any changes in the future of it will be moderate, they will be affordable and they will be certain so people will know where they stand.’

There will be no change in the amount of tax paid by homeowners until 2020.

Mr Donohoe said the proposals to give councils control of the tax would help local authorities address housing and homelessness.

Fianna Fáil finance spokesman Michael McGrath said he would be holding the minister to his word about bill increases. Fine Gael needs Fianna Fáil support to ensure October’s Budget can pass.

He said: ‘Our overall priority is to avoid the sudden spike that will happen with the Local Property Tax if changes to the current system, which was introduced by Fine Gael, are not made.’