THE TAOISEACH always had his doubts about property tax but by now he will be in no doubt that that it would be extremely unpopular across the land, and especially in Dublin.

While everyone wants to do their bit for Ireland, the severity of the tax proposed by the Commission on Taxation truly frightened householders this week. The idea that a modest enough home costing €500,000 could incur an annual tax of €1,250–€1,500 could have far reaching repercussions on the property market generally, without going anywhere near solving the nation’s financial difficulties.

For a start, the tax is unlikely to surface before the next general election, and even then only in the unlikely event of a new Government coming into power with a big majority. That possibility seems unlikely either for FF or the opposition.

The proposed tax is inextricably linked to the abolition of stamp duty for householders, so with little or no movement expected on the property tax issue buyers can face up the reality that stamp duty will continue to be charged for the foreseeable future.

Even as the recommendations stood, there has been any amount of confusion over the tax concessions for anyone who bought their homes within the last seven years.

Here is what is being suggested: homeowners would be exempted from paying the annual property tax for a seven-year period from the year they paid stamp duty. In other words, those who paid stamp duty five years ago would have just two years exemption from property tax ahead while those who purchased two years ago could enjoy a five-year break from the tax, and so on. If you paid stamp duty seven years ago, too bad. Overall, it was not a particularly generous concession for those who paid the full 9 per cent rate of stamp duty in the heat of the boom and who now have an expensive home with a big mortgage.