Revaluation could see property tax jump €360

Some homeowners could see their property tax liability jump by €360 under the proposed revaluation in two years' time, Fianna Fáil finance spokesman Michael McGrath has warned.

Mr McGrath wants the Government to use the opportunity of today’s Finance Bill to scrap the planned increase in property tax bills in 2016.

The Finance Bill, which will give effect to the changes announced in Budget 2015, will be published at 2.30pm.

The Government included a provision in the initial Local Property Tax legislation for a revaluation of properties in 2016.

Mr McGrath said the previous valuation date of May 2013 was close to the point at which property tax values hit their lowest level.

Since then property prices have been rising steadily, he said, noting the latest official data suggested Dublin prices have risen by 37 per cent in the 17 months since the last valuation date while apartment prices have risen by 43 per cent.

“Even if there is a slowing in the current rate of growth in property prices, it is likely that the next valuation date will see homeowners having to revise the valuation basis for their property tax declaration by 20 per cent or more.”

“For some Dublin residents it could be over 50 per cent. For most properties, the effect of moving up one valuation band is an extra €90 per year. Some homeowners could see their home rise by three or four valuation bands adding up to €360 to their bill.”

The revaluation process requires the homeowner to make a self-assessed declaration of their property value on November 1st, 2016. Failure to do so accurately could lead to significant penalties.