There's FAQs here, which address these questions and more: http://www.budget.gov.ie/Budgets/2013/Documents/Local Property Tax FAQs.pdfIs a valuation necessary? How will this aspect (self-declaration of valuation) be policed? Won't there be a tendency for people to undervalue? What are the implications for undervaluing (quite apart from the fact that it shouldn't be done consciously!)?
Can this data be used by a third party? I guess what I am thinking about here is people on LTV tracker mortgages - who were locked in at a decent rate some years ago on the basis of a valuation at that time. Can a bank come back and revisit valuations? Would they use this as an easy way to do that?
Simple answer - No. The bank have no right to that data.
How much would a valuation cost?
I would never ask for the services of a valurer becuase I am guessing there are loads of cowboys waiting in the wings to set themselves up as valurers to fleece you besides they will only do what you can do yourself.
There are already average prices published in the press. I suspect if you go lower you will get a visit from some revenue officials.
I don't see the state wasting massive resources in arguing with people over whether a house was worth €145k or €155k at a particular point in time, for the sake of €90.
The bands are 0-100,000 then 100,000-200,000 etc and valued on the midpoint.
No, the bands go in €50,000 slots, from €100,001 to €150,000 say. Until the million.
The bands are 0-100,000 then 100,000-200,000 etc and valued on the midpoint.
Something valued at €145 will pay the same tax as something valued at €155. No one is going to want to value something at under the midpoint and pay tax on a higher midpoint than their property is worth.
If its acceptable that I value my property at €99,000 (to avoid paying a tax on it valued at €150,000 which is definitely isnt worth) and my neighbour values his (more correctly lets say but triggering a higher tax band midpoint) at something like €120,000 then surely its totally unfair on some people? Im happy because Ive heard that the state wont waste massive resources arguing with people over 90 quid, so I just throw in the low valuation and go on my way.
People dont like paying tax anyway, and if they feel that they are being unfairly charged its going to make it all the more contentious.
I'd expect that once there's a critical mass it'll be relatively easy to police compliance, especially in the housing estates. In the case you outlined, a piece of software can easily identify the outlier values which deviate by more than a particular tolerance from the average value in an area, and where such deviation results in a band change.
Then Revenue simply issue assessments for the deficit plus penalties to the people involved - if you know you lowballed then there's no point taking a day off work to go and argue a case you know you can't realistically win in the appeals process; it becomes time to cut your losses.
It's more than likely that Revenue will use the House Price Data compiled by The Property Services Regulatory Authority to check that property owners are not undervaluing their properties.
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