ESRI are proposing a property charge of €2.50 per €1,000 valuation?

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SarahMc

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So I read that ESRI are proposing a property charge of 2.50 per 1,000, with exemptions for the very low paid.

It seems expensive to me, the average property charge will be €500 if this is implemented, i had thought it would have been around €300.
 
Much more interesting is how the valuation will be done - there's a 15 year history of completely rubbish valuations in this country...
 
Joe Higgins was suggesting that in a couple of years households could be paying up to €1,000 a year on property and water charges. It sounded like scaremongering at the time but might be accurate enough.
 
I find this worrying. Does this mean you will pay more tax if you converted your attic or added a small extension? If so it's very reminiscent of the window tax. I would have thought a site valuation tax would be the fairest option. It just seems lazy to me.
 
Of course you'll be able to deduct the amount outstanding to the banks ,
Some cheek of them to tax you on a notional value, despite how much debt is owed
 
We will be continually reminded how the UK council charges are based -roughly -on a formula that is much higher that .25% of value.

There are millions of homes in U.K. (and all over Europe) paying well over a grand a year. Indeed, very few UK houses are paying under £500 -even in low priced areas like N.Ireland.

I think an average of a grand a house is on the cards - more in Dublin.
 
At the end of the day, we are running a deficit of €10bn p.a.

€1k a household for the various property levies, water charges, etc would close this gap by about €1.5bn. So it isn't off the wall in terms of what needs to be done
 
DerKaiser said:
At the end of the day, we are running a deficit of €10bn p.a.

€1k a household for the various property levies, water charges, etc would close this gap by about €1.5bn. So it isn't off the wall in terms of what needs to be done
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Yes we need amounts of this magnitude. €1.5bn was paid to unguaranteed AIB bondholders on April 11 and hardly a word about it ! €1,100 roughly per household which is 11 times the current household charge !
 
newirishman said:
Much more interesting is how the valuation will be done
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Will the valution not be based on current selling prices?

For example:
I paid €290,000 for 5 bed house in 2006.
Vacant house next door is selling for €140,000

140,000 divided by 1000 multiplied by 2.5 is 350.

Therefore my yearly property tax is €350.

Is it not as simple as that?
 
Also, if this is intended to pay for local services will the quality of the local service be taken into account? If my local council provide the bare minimum of service will I be expected to pay the same amount as someone where the council provide excellent facilities?
 
Guns N Roses said:
Will the valution not be based on current selling prices?

For example:
I paid €290,000 for 5 bed house in 2006.
Vacant house next door is selling for €140,000

140,000 divided by 1000 multiplied by 2.5 is 350.

Therefore my yearly property tax is €350.

Is it not as simple as that?
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You can bet the government will want to avoid hitting pensioners too hard with a property tax so I assume income will be taken into account.
I'm sure there are a lot of retired people that on paper are living in a reletively valuable house but may have a modest pension.
 
theoneill said:
If my local council provide the bare minimum of service will I be expected to pay the same amount as someone where the council provide excellent facilities?
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Obviously you will be expected to pay more so that your council can get up to speed. Someone living in a county where the council provide "excellent" services (I'll have to come back to you with where exactly this county is!) will pay less cos their council don't need as much money.
 
Having lived in the Uk and paid the council Tax I can confirm that yes it would have been in anything in the region of £500 - £2000. depending on the borough(county) you lived in and the value of your property. Properties were banded A-E. Obviously it would have been alot easier to band house in an area as they would generally be the same ie a street of three bed terraces would all be banded the same regardless of any extentions loft coverstions or state of the property. Also you then have to take into account what you get for your money in the UK. Street lights, bin collections fire, ambulance and police. School books (Yes you only need give your kids a uniform to go to school) drain maintenence, road sweepers, local councils I sure the list goes no. But what will be get, Oh clear the countires debt that we the average Joe Soap had no hand in running up in the firt place !!!

I think Phil Hogan will need to think long and hard before he decides on how this is going to be implemented !
 
Shawady said:
You can bet the government will want to avoid hitting pensioners too hard with a property tax so I assume income will be taken into account.
I'm sure there are a lot of retired people that on paper are living in a reletively valuable house but may have a modest pension.
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Single people with an income of < €15k, and couples €25k will be exempt. With this exemption, it would be very hard to argue for a blanket exemption for OAPs.

I imagine it will be based on current valuation, and linked somehow to the new property price database.
It would be a nonsense to base it on what you bought it for. Sure people are still living in houses they bought for 3 shillings.
 
Allowing waivers for those on social welfare just widens the "poverty trap" in preventing some people from taking up employment. Better to either reduce social welfare top-line rates or deduct property tax at source from payments. In the UK, everybody pays even those in receipt of welfare and housing benefit making it a universal tax.

Better still, scrap the idea entirely and have the government tackle the disgraceful waste of money in expenditure.
 
If my local authority decide to invest in proper facilities then a properly devised property tax is fair enough. Small chance of that happening.

Also I'm wondering where the breaking point is going to be. As far as I can see the trend is for a great many little taxes, these all add up, there has to be a point when the vast majority just cannot pay.
 
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