Budget 2013 announced details of the Local Property Tax being introduced from July 2013.
The Finance(Local Property Tax) Bill was enacted into law this week
The Revenue are administering the tax and the first payment will be for the six months to 31.12.13.
The Local Property tax will be based on the market value of residential property.
The Revenue plans to send a form and explanatory booklet to all home owners in March 2013.
The booklet will give guidelines on assessing the value of your property.
The value of your property for Local Property Tax purposes will stay the same for 2013-2016 no matter what improvements are made to the property.
Exemptions:
- New and previously unused properties that are purchased from a builder between 1st January 2013 and 31st October 2016 will be exempt until the end of 2016.
- Properties purchased by a first time buyer in 2013 will be exempt until the end of 2016
- A builder trading stock
- Certain properties situated in unfinished housing estates (Ghost Estates)
- Residential properties that are owned by a charity or a public body.
- Registered Nursing Homes
- A property that was occupied a person as his sole or main residence and has been vacated by the person for 12 months of more due to long term mental or physical infirmity.
- Mobile home
- Property fully subject to commercial rates
- Diplomatic property
This form must be returned by 7th May 2013(paper returns) and 28th May 2013(online)
It will be mandatory for the following groups of property owners to file and pay online:
- If you own more than one residential property
- If you are already required to submit tax returns online
- A company that owns residential properties
If paying by direct debit, the payments will commence on 15th July 2013.
The Single Debit Authority will be deducted on 21st June 2013.
The tax can also be deducted at source from salary or pension payments and from payments from the Departments of Social Protection and Agriculture.
If you are a low income earner, there are provisions made for a deferral of the tax to be applied for.
When the Revenue sends out the form it will also include an estimate of your liability. This estimate of liability will be used by the Revenue if you don’t send back the Local Property Tax Return form and your own self assessment of your liability. It will be collected using normal collection/enforcement options.