Property tax may be deducted from bank accounts immediately, Revenue says

Some people may see their property tax charge being immediately deducted from their bank accounts, the Revenue Commissioners have pointed out. The timing of the deduction depends on the payment method chosen.

A spokeswoman for the Revenue pointed out the range of payment options available after a reader wrote to this newspaper complaining that the charge had been immediately deducted from his account when he had believed the money would be deducted “no earlier than 21st July 2013”.

A range of payment options, including phased payments, is available, including deduction at source from a salary or occupational pension. In such cases the money will be deducted from the first salary or pension payment made in the month of July.

The tax can also be deducted at source from payments received from the Department of Social Protection or Agriculture, Food and the Marine, again commencing from the first payment in July.

Direct debits will be debited from July 15th, and a single debit authority from July 21st.

Payments made online using a debit or credit card result in the full amount of the charge being charged to the account on the day the payment method is selected online.

People who pay the tax using a Mastercard or Visa credit card have to pay an additional 1.49 per cent service charge.

The tax involves house owners having to value their property, calculate their liability, and submit their return by the the relevant deadline.

The size of the tax due depends on the estimated value of the property concerned in May. Property with a value of up to €1 million will generate a tax charge of 0.18 per cent. Property with a value of more than €1 million creates a charge of 0.18 per cent for the first €1 million in value and 0.25 per cent for the value thereafter.