Tax not paid on 35,000 holiday homes

ALTHOUGH €57.1 million has been collected by local authorities from owners of second properties across Ireland, the €200 non-principal private residence (NPPR) tax for 2010 remains outstanding on at least 35,000 properties. The deadline for the levy for 2010 passed at the end of June.

As of yesterday, the charge was still liable on 36,140 properties, representing 11 per cent of the total 317,127 properties on which it was collected for 2009. For those paying the charge beyond the deadline, a late payment fee of €20 per month is charged.

The tax, which was introduced in last year’s April budget, has been a more significant contributor to revenues than had initially been expected, with €65.8 million collected to date for 2009, far in excess of the original €40 million estimate on 200,000 properties.

For both 2008 and 2009 combined, the total amount collected comes to €122.9 million, with late payment fees, as of July 21st, accounting for €2.1 million of the 2009 total, and €0.2 million of the amount so far collected for 2010.

The tax is payable by owners of second properties, who pay the charge to the local authority in the area in which their property is located.

As was the case in 2009, Dublin City Council is again the biggest beneficiary of the levy so far in 2010, accounting for over 19 per cent of the total amount collected, or some €10.9 million.

Cork County Council is next with 8 per cent, or €4.6 million, followed by Fingal County Council, with 5 per cent, or €2.9 million.

Despite the proliferation of holiday homes in Cavan and Leitrim – many of which remain vacant – they only account for 1.28 per cent (€0.7 million) and 0.9 per cent (€0.5 million), respectively, of the total collected so far this year.

Despite predictions earlier this summer that the Government would proceed with the Commission on Taxation’s recommendation to introduce a more comprehensive property tax levied on principal residences in this year’s budget, it is now seen as unlikely.

As such, the second property charge is likely to be the only property-based tax in operation for the foreseeable future. However, the possibility remains that the Government may look to increase this €200 charge further.