Sir, – Taxing houses based on square footage or the value of the site they sit on is like taxing income based on people’s shoe size or the colour of their eyes. There are lots of models of property tax for us to look at. In the US alone, every state has one and most cities do as well. So it’s not as if we’re having to invent something new. This is a well-trodden path.
But one thing every residential property tax, whether in the US or elsewhere, has in common is that it assesses tax based on the value of the house. Yes, people in Dublin or Cork or Galway will pay higher taxes, but this is because they are paying tax on something that is worth more.
The objection that this somehow disadvantages them makes no more sense than if medical consultants or bankers were to object to the higher income taxes they have to pay on the grounds that they were paying more than, for instance, primary school teachers. Of course they pay more because they earn more – the thing being taxed, in this case income, is worth more. Likewise if you have a house that is worth more, it’s natural that you should pay more than you would on a house that is worth less. – Yours, etc,
A chara, – With the news that the imminent property tax will be value-based, I look forward to the announcement of a “Dublin Weighting Allowance”, which I am certain must now be introduced to address the inherent unfairness of my colleague who works in rural Ireland being paid the same as me but whose home is valued at less that mine. – Yours, etc,
Sir, – The Government and the Local Government Management Agency are wrongly informing people that the property tax is required to fund local services and roads, etc. Why is no one asking the logical question here: why is the revenue of local councils falling? The real reason behind a large proportion of this is the fall in motor tax, which has been declining each year since 2008 when the new “green” tax system was introduced. Now that the mistake has been realised, “green” policies have been deprecated and motor tax is being significantly increased.
If a 2007 or older diesel Mondeo/Avensis/Corolla is generating around €700 a year to the central motor tax fund (which is distributed among the councils) – whereas the 2008 upwards models of the same car are contributing just over €200 – where is the difference going to be made up to keep the councils funded in the long term? Hence the property tax.
The distasteful part of this is that the larger and more expensive diesels provide the greatest savings for those able to afford them; however it represents the greatest loss of revenue to the councils and is an affront to those who now have to pay this charge to subsidise these cars. – Yours, etc,