Majority of properties are worth less than €150,000 according to LPT data

OVER 64% of property owners in Kerry who are liable to pay Local Property Tax (LPT) have registered their properties as being worth less than €150,000. The figure comes from recent Revenue figures for yearly property tax yields which shows that €14 million in LPT was collected from Kerry households in 2017.

The Revenue also said that 29% of house evaluations in Kerry moved into a band lower than the rate at which they were initially submitted, while only 9% of Kerry properties moved into a higher band.

Kerry’s property tax revenue is sourced from approximately 69,000 dwellings with a compliance rate of 97.3% for the county. Moreover, 1,700 property owners in Kerry are exempt from paying the tax – an exemption granted in cases of financial hardship, charities, public bodies, or residents living in unfinished ghost estates.

However, plans to review the property tax payment are under review by Finance Minister Paschal Donohoe who recently said he plans to implement a revised system of LPT charging beyond 2019.

The Minister claims such changes would insulate people from escalating bills due to rising property prices, currently linked to various LPT bands. He added the LPT intake is likely to jump to €462m in 2018, yet over 62,000 households are still exempt from payment due to an inability to pay. He also ruled out ‘freezing’ payments at 2013 levels as these valuations are also on the rise.

The new changes could also see local authorities taking a greater lead in how the tax is paid. But for now the government says it can no longer take a ‘ head in the sand’ approach which is why it’s leaving plenty of time for debate prior to the 2019 revaluation deadline.