Only one in 10 has paid new property tax

LESS THAN one second-home owner in 10 has paid the new €200 a year property tax just a fortnight before the time allowed for payment runs out, new figures show.

So far, payments totalling €5 million have been made to local authorities in respect of the non-principal private residence tax in respect of 25,000 second homes, according to figures supplied by the County and City Managers’ Association (CCMA), which is co-ordinating its collection.

This contrasts with a Department of the Environment estimate of almost 300,000 rental properties, holiday homes and empty units in the country, although some empty properties would not be liable for the tax. Mobile homes are not subject to the tax.

A spokeswoman for the CCMA acknowledged that the response to paying the tax, due since July, got off to a slow start, but said the payment rate had picked up in recent weeks.

“It is anticipated that the numbers paying will significantly increase as awareness grows,” she said.

The CCMA plans to run a further publicity campaign in the coming weeks to encourage second-home owners to pay up. Advertisements will warn of the penalties that will be imposed on late-payers, which include fines and prosecution.

Most of those who paid did so online using the website nppr.ie but a minority paid the money directly to their local authority, the spokeswoman said. The most common query received by local authorities related to owner liability.

The department says it hopes to raise €40 million from the tax, which will go to the benefit of local authorities. Revenue will in part compensate county councils for reductions in Government support, which has dropped from €999 million last year to €905 million in the supplementary budget.

Under the Local Government (Charges) Act 2009, late payment will incur a penalty of €20 a month, and non-payers may also face prosecution, after which they will have to pay the initial sum plus accumulated penalties.

The tax for this year is due to be paid by the end of September, and a late payment fee will be levied on all payments made after October 31st. Owners of residential rental property, holiday homes and vacant residential property (unless newly constructed and unsold) are liable for the charge.

The Act provides for a number of exemptions from payment, such as the temporary ownership of a second home acquired for a short period while moving house.