The property tax for Ireland will begin on the 1st of july 2013. It's really a house tax as business already pay tax in the form of rates. Every home owner in the country will be required to pay the charge. Those living in rented houses or flats won't have to pay as it's the home owner who actually pays. Also those in County Council or corporation houses wont have to pay either,
The revenue commissioners will be in charge of collecting the charge, the reason being is that the ''Household Charge'' was put into the hands of the County Councils and only fifty per cent of people actually pays the tax. The reason the revenue are doing the collection is because people fear the tax man more that any other organisation in the state.
The rates paid per house vary, a rate of 0.18 per cent on houses and flats up to one million in value, and a rate of 0.25 on houses valued above one million euro. There are no more than 2,500 houses in Ireland today that are worth more than 1 million euro. Houses and flats valued below €100,000 will pay €45 for 2013 and a full year cost €90.
It's up to the resident to value their own home, guide lines will be available from revenue. Tip- when putting a value on your home it's best to consult you're neighbours to see how much they have valued their property, better still if you live in a housing estate it's best for every house hold in the estate to put in the same amount. There's no point in one house owner putting in a value of €150.000 as a value and another putting in a value of €200,000 . It's then that the revenue will start to ask questions as to why the big difference in valuation.
Many people will be exempt from the tax, for example most people who receive dole payments, when they say exempt they mean you can put off paying the charge until you sell your house and then pay it all at once with a small amount of interest added. Older people can put off paying the tax until they die and the charge will be paid from their estate. Others exempt from the charge are the people that have pyrite in the houses.
The amount of tax paid has nothing to do with the size of your house, it's to do with how much your house is worth. A person living for example in Tipperary in a 6 bedroom house and the house is only worth two hundred grand will pay the same as a person living in Cork City in a three bed room house which is also valued at tho hundred grand.
The revenue [tax man] says that there will be no house inspection by them in the first year of the charge. The simply want everybody to get registered for the tax in the first year. In fact they say they have no plans to call to people's homes and make a valuation if for example some one living down the road says their house is worth 100 grand less than your house.
So how is the value of your home calculated ? The revenue commissioners will put a price on you house based on recent sales of property in your area in the past couple of years. They check with estate agents as to how much a house in each area sold for recently. It goes on how much it sold for and not the asking price.
So when will I receive my bill ? You will receive a bill in the post from Monday 11th March 2013. An estimate of the value of your home will be included in the bill. If you don't agree with what the revenue commissioners value your house you can always dispute the revenue commissioners valuation and put your own valuation on your house. This is not to say that the revenue commissioners will accept your valuation.
What happens if I refuse to pay ? If you don't pay the charge the revenue commissioners have the powers to take the payment from your bank account. If you are on social welfare they also have the power to make deductions from your welfare payments. If you are self employed they will not issue you with a tax clearance certificate. This is to say you are then not tax compliant.
Is the value of the land with my house assesed for the tax ? Save you own a house where there is a bit of land around it, then you only pay for up to one acre. Anything over one acre is not counted.
What about the farm and farm yard ? The farm inself is not included in the house hold charge but any building around the house are liable including the yard.
What about flats over shops / pubs / offices ? All residential property is included but not the commercial part of the building as you already pay rates on this part of the building, so only the section that is used for residential is subject to the charge.
I pay rent to the local council / corporation, do I have to pay ? No, the local council pays the charge as they are the legal owners of the house / flat. But if you live in a council house that you bought then you are liable for the charge.
What if my marrage has broken up and the wife is living in the family home ? Well if yourself and your wife's names are on the deeds of the house then the tow of you are liable to pay. If none of you decide to pay the charge then the revenue commissioners will come after the two of you.
When do I have to pay by ? If using the postal system you'll have to pay by the 7th of May 2013 and if you pay online like paying your motor tax you will have until 28th of may.
How do I pay Online ? there are several ways to pay the charge. The first is by Direct Debit, you can use your credit card online, the easy way to pay is through the post office. Just bring your bill with you and pay cash. Or when the bill comes in the post just fill out your details on the form including your bank account number you wish the tax to be taken from and return the form to revenue. They will deduct the charge from your account.
Paying Online, when you go to revenue's website you'll see a link that says ''Log Into LPT.'' click the link and follow the easy instructions such as putting in your details that revenue sent you in the post. They'll ask for your Property id, your PPS Number and your pin. Enter these and your address will show up on the next page. They'll then ask are you the only person that owns the house, if your married you'll put the wife's name down and her PPS Number. Don't worry about them looking for an email address as it's optional. They'll ask you to choose a property value bracket [ see above guide] and choose the one that is closest to the real value of your house. On the next page they ask for your bank account number and the sort code. Just fill in the bank account number and sort code. There's a ''Drop Down'' menu where you have the option of paying in instalments or all in one transaction. Choose one and that's it. It only really takes about 3 mins.
Do People Living Outside Ireland Have To Pay - Holiday Homes ?
Yes, anybody that owns a house / flat in Ireland is liable to pay. In America this charge is named ''Real Estate Taxes''.
Do I Have To Pay If I'm On The Dole ? If your claiming any kind of welfare payment you'll still have to pay, be it dole, sick pay, unmarried mothers payments. The simple fact is if you own a house you pay the charge.
[ Comment ] Do Houses With Extensions Pay More ? Some will and some wont. I have heard many stories where people who have put an extension on their house are paying more than their next door neighbour. The revenue have said on many occations that they have not valued each house individually and don't know who has an extension on their house, and all revenue is interested in is getting a database of all the houses in Ireland. Then in a few years they will value each home individually and determanate a value. This doesn't hold much weight as many people who have extended their home are paying up to twice as much as their neighbour. It has been suggested that the Revenue commissioners have access to mortgage holders accounts and base the value of the charge on the loan taken out for the extension along with the original mortgage and add the two together to get the value of the house.
The following is the letter that has been sent to ever household in Ireland that is required to pay the property tax.
As owner : 123456789fh
Local Property Tax [ LPT]
I am writing to you becase Revenue records show that you are the owner or person liable for Local Property Tax.
Address: LPD Branch, PO Box1
Job Bloggs Limerick
123 Street Name Phone 1890200255
I enclose a Local Property Tax return form [Form Lpt1 for this property which you must complete and submit to revenue. Even if the property is exempt. I also enclose a booklet explaining LPT which includes a step by step guide to completing the return. I also set out overleaf a notice of estimate of LPT for this property. If you are not the owner of the property, or if the property is not a residental property, please follow the instructions at section 4 overleaf.
On the enclosed return is a property ID and PIN to allow you to complete and submit the return electronically through www.revenue.ie If you send your completed return by post, revenue must receive it by 7 May 2013. If you are sending it electronically you have until 28 May 2013. If you have more that one residenential property or if you are already obliged by law to submit your other tax returns on-line, you must complete and submit this return electronically.
1 Working Out How Much To Pay
The amount of LPT depends on the much the market value of your property on1 May 2013. Values are organised into bands and to complete the return you will need to self-assess the value of your property and enter the appropriate valuation band in your return. The booklet on pages 6 and 7 tells you where to find guidence to help you in assessing the market value of your property. If you follow the guidance in an honest manner, revenue will accept your valuation. The rates of LPT and directions on how to calculate the amount you have to pay are explained on pages 5 and 14.
The value of the property for LPT purposes on 1 May 2013 will remain the same for all years, 2014, 2015,2016 regardless of any extentions, alterations, enhancements of sale values in the meantime.
2 Paying LPT
LPT for 2013 is for half a year and is payable on 1st July 2013. There are many different ways to pay, see page 7 of the booklet. You can opt to make one single payment or to phase your payments in equal instalments. You must select a payment option when completing your return and if you opt to pat through the single debit authority [which is like an electronic cheque] the LPT amount will not be deducted from your bank account until 21st July 2013.
If you satisfy conditions you may apply for a deferral or part deferral of payment of the LPT. The booklet sets out the conditions on pages 8 and 9. Please read these carefully to see if you qualify and if you are applying you still must submit the completed return form.
3 Notice Of Estmate.
I set out below a notice of Estimate of LPT payable [ see page 11 of the booklet]. This is not based on an actual assessment of the market value of your property. It is a formal notice that if you do not submit a completed return and opt for a payment method or a deferral/exemption, the estimated amount will be collected by revenue through deductions at source from payments made to you by, for example, your employer or a state body or through other means. Once you complete a fully return form, the notice of estimate will no longer apply.
Even if you consider that the amount shown on the Notice Of Estimate accurately reflects your self-assessment, you should still complete the return on that basis, select a paymeny option and submit a return. Revenue will review cases where the notice of estimate amount is paid and may issue a revised estimate or a formal tax assessment for the property.
If You Are Not The Owner Of The Property Shown On This Letter
Because there is currently no property register that is 100% accurate, there will be errors in revenue's records at the start and some people will receive a letter in error. This could happen for example where a son or daughter paid the household charge on behalf of a parent, where the property owner died and the transfer to the new owner has not yet been finalised, or where a landlord of a rented property has not registered with the private residential tenencies board.
If we have written to you in error we apologise. However it is most important that you contace revenue to correct our records because in the absence of and correction, revenue will proceed on the basic that you are liable to pay LPT in respect of this property. If you consider you are not the liable person, or if the property is not a residental property please do not ignore this letter. Please write to revenue at the address overleaf elclosing the name address and ppsn of the owner of the property [if you are not the owner] and any other supporting documentation within 30 days of the date of this letter. Pages 3 and 4 of the booklet describe who is a liable person, what is a residential property and provide more detailed instructions for you to follow.
Please read the enclosed LPT booklet. it contains information and guidance to help you to complete and submit your return. It also sets out on page 11 your grounds for appeal against various aspects of LPT. Our website also contains tetailed guidance and frequently asked questions that are regulare updated. If you do not have access to the internet, advise is availably from your local Citizens Information Service. Or you can contact revenue on 1890 200 255 or look up on Aertel page 593. Internet access is available from your local library.
If you do not complete and submit your LPT Return to revenue on or before 28 May 2013, I hereby give notice that the amount is legally payable by you and I may initate steps to collect the amount without further notifcation. This notice can only be desplaced by the submission of a completed Return setting out the amount of the Local Property Tax payable by you in respect of the property.