Household Charge.(originally Budget announcement)

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Brendan Burgess

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The Local Government (Household Charge) Bill 2011 provides for the introduction of a100 household charge payable by owners of
private residential property. The liability for the charge arises by virtue of ownership of residential property and the revenue stream
will be collected centrally by the Local Government Management Agency (LGMA) on a shared service basis on behalf of city/county
councils. The income from the household charge will be lodged to the Local Government Fund, out of which funding will be provided
by the Minister for the Environment, Community and Local Government to local authorities in the form of General-Purpose
Grants. Liability for the household charge will be at a point in time basis (i.e. 1 January in each calendar year) to be known as the
‘‘liability date’’. Owners of residential property will have until 31 March in which to pay the household charge through an on-line
system by credit/debit card, or by post, by cheque or postal order, etc. to the LGMA. Those who opt for instalment arrangements will
be required to notify and to pay four instalments to the LGMA within the calendar year. Failure to pay the charge by the due date
will result in the application of a late payment fee and late
payment interest.

Opinions discussed here

 
Household Charge.

its 100euros;
The following households will have the charge waived :
1. Those in receipt of mortgage interest supplement (i.e on very low incomes). question, what if someone has no mortgage and is on a low income?
 
there is no info yet on whether people on social welfare will be exempt
 
So based on this people who live in property that they manage themselves do not have to pay it?

Exemption list:
(g) the extent to which roads, open spaces, car parks, sewers, watermains, drains or other public facilities in the development have been taken in charge by the local auth- ority concerned, and
(h) where there is an agreement with the local authority con- 40 cerned relating to the maintenance of roads, open spaces, car parks, sewers, watermains, drains or other public facilities in the development, the extent to which there
has been compliance with the conditions for maintenance under the agreement.
 
Do you have to pay the €100 if you are already paying the €200 2nd Home Charge ?
 
its 100euros;
The following households will have the charge waived :
1. Those in receipt of mortgage interest supplement (i.e on very low incomes). question, what if someone has no mortgage and is on a low income?

The exemptions don't deal with low income as such, only for those on Mortgage Interest Supplement (and in other specific circumstances, eg. if you have to leave your house because of infirmity or if you die).
 
So based on this people who live in property that they manage themselves do not have to pay it?


Are they trying to exempt Ghost Estates in g) and h) ? There are thousands of houses in estates (some in urban environments) that have not been taken in charge by the local authorities including some that have no intention of applying.

If you live in a rural house at the end of a private bohereen with your own arrangements for water and sewage and waste are you liable to the house hold charge?
 
Late fees and penalties:

Owners not occupiers will be liable.

Monies raised will be paid into the Local Government Fund and will be allocated back to local authorities by the Minister in General Purpose Grants.

The liability date will be 1 January in 2012 and subsequent years and households not availing of instalment arrangements will have three months to pay. Late payment penalties and late payment interest of 1% per month or part thereof will apply thereafter.

Late payment fees, calculated as follows, will apply in the case of a household charge paid not
  • later than 6 months after the due date, 10 per cent of the amount outstanding,
  • later than 6 months and not later than 12 months after the due date, 20 per cent of the amount outstanding,
  • or later than 12 months after the due date, 30 per cent of the amount outstanding.


Exemptions:


  • Residential Properties that are part of the trading stock of a business (not sold or not having generated an income)
  • Social housing, including voluntary and cooperative housing units
  • Residential properties owned by Government/Health Service Executive
  • Residential properties owned by a charity
  • Residential properties to which commercial rates apply
  • Where a person is forced to leave their dwelling due to long-term mental or physical infirmity (elderly person that has moved into a nursing home)

http://www.environ.ie/en/LocalGovernment/LocalGovernmentAdministration/News/MainBody,28841,en.htm



Marion
 
My reading of the bill:

4.4.b provides for a waiver for those living in unfinished housing estates.

5. provides for a list to be maintained by the minister of such unfinished estates. The minister can only put such estates on the list that meet criteria a)- h).

aj
 

Apparently people in those circumstances will be liable, unless you can persuade the minister to classify you as an unfinished housing estate.
 
Owners not occupiers will be liable.

This is interesting. In the UK the Council Tax is levied on the occupier, not the owner. The owner pays 50% of the charge if the property is vacant.

I think it was mentioned in another thread- will this mean that for non PPRs there will be the NPPR of €200 and the new €100 charge?
 
In France, there is a tax on the owner (taxe foncière) AND a tax on the occupier (taxe d'habitation) of all homes
 
So if you own a rental property you now have to pay €100 plus €200? So rental property tax is basically now €300 (unless they raise the NPPR rate as well)?
 
So if you own a rental property you now have to pay €100 plus €200? So rental property tax is basically now €300
I was under the impression that private residential property excludes property actually rented out.
 
I was under the impression that private residential property excludes property actually rented out.

For leases of less than 20 years duration, the person entitled to the rent is liable to the charge. For leases over 20 years in duration, the lessee is liable. But in both circumstances, the charge is applicable provided that the property is used as a residential property.
 
4.4.b provides for a waiver for those living in unfinished housing estates.
How is that to be interpreted exactly? I've been on to my Co.Co. planning office for the past 8 months - looking for clarification as regards if they will be taking estate in charge, if there are still items to be completed by the developer before they can take it in charge, etc.
 

I wonder how the money will be apportioned out to the local authorities, i.e. will it be paid back so that all money paid by DCC residents will go to DCC or will it be split some other way.
 
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