86% of homes are valued under €250k, say property tax figures

MORE than 86% of Irish homes are valued under €250,000 for local property tax assessment, according to new figures.

Preliminary 2018 local property tax (LPT) statistics published yesterday by Revenue showed that 27.2% of Irish homes are valued at less than €100,000 while a further 27.8% are valued between €100,001 and €150,000 – which doesn’t appear to match soaring prices on the property market last year.

According to the Daft.ie wealth report for the second half of 2018, the average property nationwide was worth almost €257,000 in the third quarter of 2018.

When the LPT was introduced in 2013, it was calculated based on the value of a person’s property at the time when prices were just recovering from the crash. Originally, the valuations were to be revisited every three years but then finance minister at the time Michael Noonan deferred it to 2019.

LPT added €482million to the Local Government Fund in 2018. The statistics show in 2018, 797 cases were referred by Revenue to the sheriff or external solicitors for collection.

There were 12,800 tax clearance requests made in 2018 on foot of noncompliance of the tax, of which 97% were subsequently granted clearance.

Revenue also wants to remind homeowners who have not already paid that this Thursday is the payment deadline.

In December, Taoiseach Leo Varadkar indicated that property tax exemptions will come to an end this year. Tens of thousands of homeowners who bought their property since January 1, 2013 qualified for an exemption as long as they occupy the property as their sole or main residence.

According to Mr Varadkar, the exemption was originally introduced to encourage increased housing supply.

The Taoiseach also said that getting rid of the exemption will being in extra money for local authorities. A review of the property tax is expected to be completed later this year.