Home owners can easily become sidetracked on revenues valuation of their property and overlook the rate being applied and what might happen in the future.
For example lets say there are 1,000,000 homes that are liable for the tax. If government set a target of € 130 m in tax and the present value of each property is €100,000 then a rate of 0.13% would need to be applied to achieve the target. (1,000,000 homes * €100,000 (average home value) = €100 billion and a tax at 0.13% = €130 million)
However, Revenue might be inundated with home owners saying their property is not worth €100,000 so instead Revenue devalue all property by let's say 20% (now you are not complaining about your valuation) but apply a rate of 0.18%
€100,000 less 20% = €80,000 * 0.18% = €144 million
Next year who's to say that the rate won't change to 0.20%.
So it's not a question of how much a home is worth but rather what its costing you now in tax and whether or not that tax will change and by how much.
For example lets say there are 1,000,000 homes that are liable for the tax. If government set a target of € 130 m in tax and the present value of each property is €100,000 then a rate of 0.13% would need to be applied to achieve the target. (1,000,000 homes * €100,000 (average home value) = €100 billion and a tax at 0.13% = €130 million)
However, Revenue might be inundated with home owners saying their property is not worth €100,000 so instead Revenue devalue all property by let's say 20% (now you are not complaining about your valuation) but apply a rate of 0.18%
€100,000 less 20% = €80,000 * 0.18% = €144 million
Next year who's to say that the rate won't change to 0.20%.
So it's not a question of how much a home is worth but rather what its costing you now in tax and whether or not that tax will change and by how much.