Data from The Economist shows how Ireland is once again leading the world in property inflation. This will impact property tax costs for homeowners.

Currently, the property tax is set in relation to the value of a property. This measure was introduced by Fine Gael last year with no consideration of people’s ability to pay. With Ireland once more heading up countries globally in terms of property price increases, this tax is due to rise.

To ensure there isn’t a further undue impact on homeowners, the government need to tackle four aspects of this tax immediately.

(1) The revaluation of properties for purposes of the Local Property Tax (LPT)
should not go ahead in November 2016 and the existing property tax bands
should continue to apply from the period 2017 to at least 2020 at which time a
full review of the operation of the LPT should take place.

(2) A home certified as category 1-3 for the presence of pyrite should receive an
exemption from LPT for a period of 3 years or until such time as the problem
is remediated. (So far, only 5 homes out of the thousands riddled with pyrite in Kildare and the greater Dublin area have been fixed under the Pyrite Remediation Scheme).

(3) A credit should be provided to owners of apartments and managed complexes
for up to 20% of their LPT liability in cases where the owner has paid their
management fee in full, in recognition of the cost of services ordinarily
provided by the local council.

(4) The interest rate applied to deferred LPT liabilities should be reduced to 2%

The above measures are being proposed by Fianna Fáil’s as part of the party’s efforts to go someway to making this currently, unfair, regressive tax more flexible and responsive to the needs of homeowners around Ireland.

Let’s hope the government see sense!