The government is considering a ‘super property tax’ for owners of large, expensive homes.
Under the proposals, the rate of tax levied would rise with the value of the property, according to a report in today’s Irish Independent.
Similar to income tax, the property tax rate would go up in bands linked to the value of the house. That means owners of such houses would pay a higher percentage rate of tax due to its greater value. This ‘super tax’ would help the government to sell the property tax to the public as homeowners would clearly see the rich paying more.
A coalition source said: “You would need bands . . . the millionaire’s house would proportionately cost more.”
It will spark concern among those who already stretched themselves to buy a relatively expensive property, and have already paid stamp duty. But no decision has yet been made on the proposals – or on the levels at which a higher rate of property tax might kick in. The Government is trying to devise a system that is as easy as possible to understand.
“Taxes that are complicated are not publicly accepted,” a coalition source said.
The coalition is moving toward a pure market value model for the property tax. This measures the home in terms of its price if it was being sold on the current market.