The Sligo Champion

Property tax – what will it cost you?

- ENDA BRADY

THIS MONTH 1.9 million homeowners will receive letters from the Revenue outlining the new Local Property Tax. The tax will be charged at 0.18 per cent of the value of the property up to €1 million, with a rate of 0.25 per cent on all sums over that figure. The tax is payable from July 2013. There are 20 tax bands of €50,000 up to €1 million. If your property is deemed to be worth more than that, you pay tax on the actual value of the property.

The rate is at the mid-range of each €50,000 bracket. If your house is worth between €150,001 and €200,000, your tax will be based on €175,000 and you can expect to pay €315 a year.

If you are on low income, suffering “excessive hardship” or availing of the new insolvency arrangemen­t you can apply to defer payment of the Local Property Tax.

If you bought from developers in 2013 and not lived in your home yet, have had to leave your property due to serious illness, own a home in a ghost estate, are affected by pyrite or are in a property used by charities for recreation­al purposes you won't have to pay the tax.

If you don't pay, the Revenue has the power to deduct tax from your wages or have it taken out of your pension. It can go after your bank accounts. It can withhold tax clearance certs, tax refunds and can impose fines and penalties.

Owners of every property are required to pay. If you are a landlord you'll need to pay the tax for your property. If you don't pay the revenue will charge you eight per cent interest on whatever you owe.

When you get your letter there will be a suggested tax band for your house but ultimately you will decide on the value. You will be expected to take account of specific changes you may have made to your property and other factors unique to the house. If you deliberate­ly under value your property, if you sell at a higher value, a payment of unpaid taxes will be required.

May 1st is the date on which the property will be valued and if you are paying using regular post, the tax will have to be paid by May 7th. If you use the online system, you have until May 28th.

■ Enda Brady is a director and key account manager for iQ Financial at Quayside, Sligo

 ??  ?? ■ If you don’t pay the property tax, Revenue has the power to deduct tax from your wages or have it taken from your pension.
■ If you don’t pay the property tax, Revenue has the power to deduct tax from your wages or have it taken from your pension.
 ??  ?? ■ Enda Brady
■ Enda Brady

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