The Revenue Commissioners has started writing to homeowners informing them they will need to reassess the value of their homes in the weeks ahead for the purposes of local property tax.
Homeowners will have until November 1st to revalue their homes as part of the first shake-up in the local property tax regime since it was introduced eight years ago.
According to estimates from the Department of Finance, the revised system for calculating the tax will see 36 per cent of those liable to pay the tax facing a higher bill while 53 per cent will see no change. A further 11 per cent will see a reduction in their tax.
The existing taxes are calculated on valuations carried out in 2013, when the tax was introduced. Prices have climbed significantly since then.
In the letter sent out this week, Revenue said the value ascribed to homes will determine the amount of tax due between 2022 and 2025.
There are 20 bands as part of the system, with the lowest-valued properties – up to €200,000 and €200,000-€262,500 – facing a fixed annual charge of €90 and €225, respectively.
Sliding rate
There is a sliding rate then from bands three to 11, with all properties in each band facing the same bill.
Houses valued at more than €1.05 million will be charged on the exact prices. A rate of 0.1029 per cent will be charged on the value up to €1.05 million and then 0.25 per cent on the amount between €1.05 million and €1.75 million and 0.3 per cent on the balance.
First-time buyers and new homes bought since 2013 – two groups which were previously exempt – will also be liable for the tax in a move which will bring more than 100,000 homes into the LPT system, increasing with it the tax take to local authorities and the exchequer from €480 million to about €560 million.
