I think the Local Authority exemption to the property tax will be challenged.

Status
Not open for further replies.

ajapale

Moderator
Messages
7,700
I think the Local Authority exemption to the property tax will be challenged.

In the same way that Local Authorities must now pay VAT on off road car parking because they were competing with private car parks who paid VAT.
 
I don't think local authorities are actually competing with private accommodation though?

If they were then the whole system of getting people off rental supplement and into council housing would presumably be open to challenge in the same way?
 
I don't think local authorities are actually competing with private accommodation though?

Arent they? There are a lot of private landlords providing 'social' housing in this country. Any landlord that has rent allowance tenants is in the social housing business.
 
I agree that many landlords are in the social housing business but the fact that there is a concerted effort to get tenants out of rent allowance paid accomodation and into directly provided accomodation would at the very least suggest unfair competition.
 
I don't know, the revenue from the household charge is to fund the local authority theirs is a large % of the budget from the dept of Community, Environment and local government that would usually go to the local authority reduced with the intention that the Local authority would raise the funds from the house hold charge.

If they in turn had to pay the charge it would defeat the purpose.

I don't see why tenants of the local authority aren't liable, they have houses for life at low rates or it could at least be incorporated into their rent, an extra €1.92 a week perhaps.
 
Definitely make council housing look more attractive , but figured it was because the residents were renting instead of owning.
So if they went ahead they'd have to charge tenants instead of landlords , and no chance of that happening
 
Charging the local authorities would be a bit pointless and it would only add an administration cost to monies moving within the system, thereby making the available funds less effective.

As it is a tax on property ownership, it may have the impact of discouraging people who rent from local authorities from buying their property as they will then incurr this tax. I am not sure if that is a good or a bad thing. The local authority retains their housing stock but potentially lose the capital from sales to reinvest in future stock.
 
So if they went ahead they'd have to charge tenants instead of landlords , and no chance of that happening

The property tax is a property owners tax and will not be levied on tenants (private or public). Certain landlords may seek to pass on the charges by way of rent increases but that is a private matter between the house owner and the tenant whilst complying with the landlord-tenant leglislation.

I think if the Local Authority exemption levy were to be removed the amount owing could be offset against the income generated. This would have the effect of increasing the compliance rate. Granted it would only be a book keeping excercize but anything which reduces the amount of exemptions and exceptions cant be a bad thing.
 
Status
Not open for further replies.
Back
Top