It’s time to pay your property tax: the good news is it could be less than last year

Amid the furore about water charges, it's worth remembering that the payment date for property tax is also fast approaching.

The good news this year is that residents living in 14 local authorities across the State will see their property tax fall, thanks to a reduction ranging from 1.5 per cent to 15 per cent.

The bad news – apart from the fact that you have to pay the tax of course – is that the revaluation date of November 1st, 2016 is looming ever closer on the horizon.

Given the dramatic rise in property prices in urban areas such as Dublin, this means that property tax may rise substantially for residents of the capital in coming years.

Should I get a letter?

On October 20th, the Revenue Commissioners started the process for 2015 by sending out approximately one million letters to property owners. If you paid your 2014 tax in one lump sum by direct debit, debit/credit card, cash, cheque or postal order, or if you made regular payments in cash, you will get such a letter from Revenue confirming the amount due for 2015, and indicating whether or not this amount has been changed.

If however, you opted to pay your tax by deduction at source or direct debit, don’t expect to hear from the Revenue. Your existing payment method will simply be rolled over to 2015.

How much do I owe?

As there has been no revaluation since the tax was launched, you will likely pay the same amount in 2015 as you did last year.

However, depending on where you live, you might find that your bill will be less as local authorities exercise their powers to amend rates.

Whether or not you are liable for property tax will depend on ownership at the “relevant date”, which, for 2015, is last Saturday – November 1st, 2014. If you owned a property on this date, you will need to pay the tax for 2015.

Do I need to tell Revenue I am due a reduction?

If you’re liable for a reduction in 2015, Revenue says you won’t have to do anything, as it will apply the deduction automatically. The reduction ranges from 1.5 per cent in Louth, to 15 per cent in Dublin (see table).

How can I change how I pay?

Your current payment method/exemption will automatically apply for 2015 so there is no need to contact Revenue if you wish to continue to pay by the same method.

If, however, you paid by lump-sum in 2014, but want to swap to monthly payments for 2015, you need to log in to your profile and change your payment method by November 25th.

The latest date at which you can make a payment is March 21st, which is the date a “single debit authority”, or transfer from your account, goes through. However, you must notify the Revenue by January 7th if this is the payment type you prefer.

Can I pay the tax now and be done with it?

If you want to avoid another bill in January, you can pay your tax now – even if it does mean that Revenue will have your money sooner than they should.

If you wish to make your payment before January 7th, you can do so via www.revenue.ie and the payment will be processed as soon as it is received by Revenue – ie it will be taken out of your account.

How can I access my information?

To access a record of your LPT payments, you can log on to revenue.ie and proceed to the LPT website.

To get access to your information you will need your PPSN, property ID and PIN. If you don’t have this, you can access the same website, and by providing your PPSN or tax reference number you can request your property ID/pin. These will then be sent out by post to you within five working days.

Or you can ring the LPT helpline: 1890-200255

If you are due a reduction (see table) be sure to double-check that the Revenue has adjusted your tax accordingly.

Property tax: Key dates to remember

November 25th Date by which you must inform Revenue if you want to change your method of payment January 7th Date for paying in full by cash, cheque, postal order, credit card or debit card; date for notifying Revenue that you wish to have the money deducted from your account by single debit authority January 15th Direct payments recommence and continue on the 15th of each month thereafter March 21st Single debit authority payment deducted

Property tax: Who pays less in 2015

Area              % reduction
Louth County Council: 1.5%
Limerick City and Co Co: 3%
Mayo Co Council: 3%
Westmeath co Council; 3%
Longford County Council: 3%
Kildare county council: 7.5%
Cork County Council: 10%
Cork City Council: 10%
Clare County Council: 15%
Dublin City Council: 15%
Dún Laoghaire Rathdown Co Council: 15%
Fingal County Council: 15%
South Dublin Co Council: 15%
Wicklow County Council: 15%

How it has changed?
Examples of property tax bills in 2014 and 2015

Eaxample 1:
Address: College Square, Terenure, Dublin 6W
Approx current value: €620,000
Property tax in2014: €1,125
Property tax in 2015: €956

Example 2:
Address: The Lawn, Westgrove, Donnybrook, Douglas, Cork
Approx current value:  €175,000
Property tax in 2014: €315
Property tax in 2015: €283