Property and water taxes could set households back €1,000 a year

Property and water taxes could set households back €1,000 a year

The new household charge could be replaced by a combined property and water tax in the next two years, setting households back €1,000 rather than the €100 charge they will be expected to pay in the New Year.

The controversial €100 household charge is to be replaced in forthcoming Budgets by a full-blown property tax which will cost householders many times more than the present charge, with estimates varying from €250 to €600 per house, depending on its size and value.

The Government also plans to bring in water charges, which could be another €500 per house, according to one financial expert at the Economic and Social Research Institute (ESRI).

People who fail to pay the new charge could be fined up to €2,500 — and have their wages or social welfare payments docked under new laws being planned by the Government.

A handful of opposition TDs have already said they plan to boycott the household charge with MyHome.ie’s poll on Friday finding that 54% of those who took part also plan to not pay it.

The key elements for the new property tax are expected to include the value of the property, household income, regional differences between property values, payment of stamp duty by first-time buyers during the property boom and waivers for council tenants, and those getting State help to pay their mortgage.

A group of experts will work out a formula for how the property tax will be applied and are expected to complete their work by next summer.

Mr Hogan said he also expected that the new €100 charge would flush out owners on second homes who have been evading the existing €300 tax on second properties.

John Fitzgerald, of the ESRI, said in an interview last July that the property tax could be as high as €800 a year with a water tax of up to €500.

There is 1 comment for this article
  1. derwood kirkwood at 4:16 pm

    Wake up people. Your country is totally broke. You allowed your government to nationalize the losses taken by banks and citizens during the building bubble of the last 10 years. That means, like it or not, you are on the hook for all that debt. Plus, it appears many of you also require that the same level of entitlements and services you’ve grown accustomed to remains provide by the government. Refuse to pay higher taxes? I suggest you take a gander at Greece, because that is your future. Greece is notorious for not paying taxes–which is why it is totally broke with riots in the street. Those who refuse to pay the tax seem to think such behavior will have no impact on the Euro–when in fact, your failure to honor your obligation to pay off the debts you owe (thru higher taxes) will surely be a determinative factor in the coming failure of the EU. Perhaps that is not a bad thing–but every one of you refusing to pay–realize you are almost ensuring the end of the EU as you know it.

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