Budget 2010: Possibility of Property Tax Increase

Budget 2010: Possibility of Property Tax Increase

Budget 2010: Possibility of Property Tax Increase5 days and counting, Budget 2010 is nearly here and like other sectors the property market will not escape.

While it is reported that a property tax for all home owners is unlikely to be introduced this year, rumours are rife that an increase in the €200 property tax on second homes is on the cards.

The tax has made … many newspaper headlines and has been the subject of much debate since its introduction in July of this year. Less than two weeks ago the tax was again criticised after it was announced that the tax payment date for next year would be brought forward by 5 months from October to May as it fitted in better with the financial cycle of local authorities. Many homeowners say they have already paid enough on the purchase of a second property and that the government has also received its fair share from all properties purchased.

So far made the tax has made €48.3 million in local authority revenue.

Have your say:

  • Should the €200 property tax on second home be increased in next week”s budget?
  • Or should there be any property tax at all?
There are 27 comments for this article
  1. jim o’doyle at 5:02 pm

    A lot of people are telling me that this tax still applies even if your second house is in another country. this cant be true is it??

  2. Raymond at 1:00 pm

    Just vote the incompetent idiots out of power. Ordinary irish citizen have the power they just need to understand when to use it and how to use it. Fianna Fail robbed the ordinary Irish during the booms years and still robbing them during this terrible recessionary period. I will leave Ireland if Fianna Fail wins the next general election again enough is enough. Please am begging you all irish buddies vote them out , dont be a financial slave to your government and the bankers.

  3. Pauline O’Shea at 7:43 am

    We knew that the introduction of property tax is the tip of the iceberg, we are expecting more taxes.
    However, people with second homes should not be over-taxed. Most of us were born and bred in the country and were forced to leave to find work in the UK or USA before the Celtic Tiger days came, and I am one of them. We are after all bringing revenue into the country, by coming once or twice a year to the home. Everyone should do their bit for the country; the social security scam is scandalous and they should tighten up on this. I am in total agreement with the other ‘bloggers’ on the way some people are milking the system. Many of us were left with second homes by our parents and do not wish to sell. I have personally worked very hard to have acquired a second home, having left Ireland at a very early age, likewise some members of my family.
    We should not be penalized for the banking system or the way the country has been run on “a bottomless purse”. As one person recently put it in the newspaper, “you were in danger of being lassoed into the bank as you walked in order to coerce you into taking out a loan”!.

  4. Frank at 4:00 pm

    I don’t own a second home, but I don’t think we should be punishing somebody with a holiday home in Wexford or Donegal for the mess we are in. Maybe if they have a third or fourth property, that would be different.

    A much better idea would be to tax the owners of unoccupied property, that is not a second home. And while you are at it unused zoned land should be taxed too. That will bring in more revenue, speed up the correction in the property market, force the sale & return of green belts to the state at agricultural rates and reduce rents.

  5. TC at 1:13 am

    For those of you who ran off and purchased 2nd properties to make a “killing” in the good times – well you must now share the burden and pay the price. Just like share holders in Irish Blue chip shares – your silence was deafening when profits were soaring but now you must make your contribution to the recovery – in the National Interest of course. Hopefully the tax on 2nd properties will rapidly rise to about 1000e per annum per property over the next couple of years. Time to cough up folks.

  6. zap at 2:47 am

    It is obvious that the fools running our country have no business sense. If you tax people on a second home, how are they going to get houses sold that they now own as part of the debt swap?

    Obviously they haven’t thought of the consequences; let me think this through…..hmmm… “you tax people on second homes, and you lose your shirts”…twats!! They need to entice people to buy, not clam up us Irish from digging in our pockets (those that can afford that is) to get Ireland our of a recession.

  7. Pradeep K Chadha at 11:20 pm

    The government is trying to raise taxes from a source that has already taken a beating at the hands of the politics of greed. By raising this tax, it is being made sure that those who ever think of having an investment property will not have an option to go ahead. There is a stamp duty and a capital gains tax and now a tax for having a property for your pension. God bless the system and the politicians who have blessed us with this state of governance.

  8. Christopher Brennan at 7:48 pm

    And don’t get me wrong either, I do agree with the above “Frustrated by the idiots running this country” on their point of non-working social welfare recepients. Anyone in social housing in receipt of social welfare should be forced to attend FAS courses or provide a reasonable reason why they are unable to work in order to be in reciept of the above. It is unfair on all, rich and poor, to subsidise their lazy attitude to life that they don’t have to work and will get everything for free from the state. It’s not only Eastern Europeans. I was on a very crowded bus a few weeks ago when this african woman and her three kids were getting on. She tried getting her pram onto the bus but couldnt get it folded. The bus driver was getting irritated and told her to hurry up that he had to leave. I was going to help her but she left the pram there and told me that it was okay, that she could goto the relieving officer and get a new one in the morning!!! I still live with parents because I can’t afford the excessive price landlords ask. The only house I could afford would be miles outside of Dublin and impossible to commute to work on. While people take from the state and not give back will only serve to increase my taxes, make me even more destitute than I am after my pay cuts and ensure that I could never dream of having to pay a tax on a second home, never mind stamp duty while others pay even larger sums of both taxes when they do goto purchase a first or second home. The government needs to learn some serious lessons now before entertaining the thought of throwing more taxes on an all-ready overburdened working tax payer.

  9. Christopher Brennan at 7:36 pm

    I know that it might make me unpopular to state this but I think it is fair to increase the rate of tax on a second home. Let’s be honest, if you can afford a second, third or consecutively numbered home why should you not pay a tax on it. There are at least a million people in Ireland too poor to own a home, even at the reduced prices that you can get one now, and these people pay the same rate of tax as the next person. There are working people and working families out there that can’t afford their own home and are renting from a local authority. Why should those with the most be allowed to live the high life and not contribute the extra to enable society to provide for social housing, to ensure that water rates and other council charges will not be brought in and for the other bills that local authoities have to improve the quality of living for those not rich enough to own even one home. Landlords have been milking tennants for far too long, especially during the boom, and those who have enough money to own a holiday home should certainly have to pay for the right to own a home they would use for only a few weeks while thousands of people wait on 10 year waiting lists for the chance to live in socially provided homes.

    Granted I am not a big believer in this government or it’s new inspiring ways to tax it’s way out of the recession but at least it’s one tax that the poor of this country will not have to pay.

  10. Sunshine at 6:58 pm

    Like many of your other readers, I have paid enough in that I have paid my property tax for one year. Owning a so-called second property does not mean I have lots of money – I am renting where I live and do not own my own home. There are always unusual circumstances. I hope to get tax relief on any property tax which I pay to the bowsies.

    This government is the pits and needs to go.

    I will not pay any further property taxes.

    This government got us into the diastrous never-ending mess in which we find ourselves.

    Thankfully I am emigrating on December 19 and I wish all well who are staying put.

    I would like to see the IMF come in – they would have salaries – including those of the government.

    It is long overdue. We have been taken for the biggest ride of our lives and unfortunately, it ain’t over yet.

  11. Linda at 4:43 pm

    I have a second home not by choice but because my husband and I bought our house together, I previoulsy opened an apartment and cannont sell it because of the market so I have to rent it. I don’t mind paying €200 but I don’t want to pay anymore. My husband is now unemployed and we are just about covering the mortgage. Enough is enough. And if someone can afford to buy a second home good luck to them they shouldn’t be penalised for it

  12. Brendan at 3:18 pm

    This is a Mickey Mouse tax. Ireland needs a proper wealth tax imposing a reasonable levy on all wealth in excess of some reasonable figure (including the primary residence). It should not be beyond the wit of DFin to devise a fair deferment mechanism for persons who have wealth and lower incomes. The alternative for those on higher incomes is that income tax and VAT rates move enexorably higher. Also, just about every developed country in the world regards it as a fair and reasonable thing to do. Why should we be different?

  13. Fergus at 2:44 pm

    Th figure of €200 per annum was only evr going to be a very gentle introduction to a tax on second homes. Councils need a higher percentage of local funding to wen them off simply expecting to be 100% funded by general taxation. Those taxes need to be directed to health and education and so yes, I think there should be an increase – to at least €100 per month.

  14. Frustrated by the idiots running this country at 2:02 pm

    I think those on this site that are in agreement that the property tax on second homes should be increased obviously do not own a second property. For those of you other there like us, who in their younger years worked hard and paid high taxes and still managed to save enough to buy a second property that is rented out as a retirement investment – then no – why should we be penalized? We’ve paid stamp duty on the property, do not rip off our tenants as the rent does not fully cover the costs we have to pay out-mortgage, mtg protection, insurance and the various other costs involved with running a house and it’s upkeep on a yearly basis. I think this country is an ABSOLUTE JOKE – sure, tax all of us who have worked hard to get what we have and haven’t cost the country a cent. Why not go after the loafers on social welfare for years, or even decades, who have gotten free houses when they couldn’t be bothered to work when we all know some of them could have. I know personally families of Eastern Europeans who speak perfect English living in Ireland for years and have been on assistance from Day 1 – why didn’t they get a job when their were loads of them in the good days of the Tiger? Why did the government feel it necessary to give out our money to everyone? Why weren’t they investigated. I’m not going after these people I just want to know why they weren’t looked at quite so easily – when it seems so easy to just get people like us with a second property to pay more now.

    If stamp duty on primary homes comes into effect the government had better come up with a very good system as we paid thousands and thousands on ours – so it better take all of that into account as well!

    The country had better buck up and stop passing all their misery on to us. It is because of them and their relationships with the banks, builders and property developers during the Celtic Tiger and the complete and utter lack of foresight to see this day coming that has led us down the path of complete bankruptcy. And they say only the Italians are involved in the Mafia – I think the Irish Goverment/Bankers/Builders are a prime example of a Mafia – extorting money out of its citizens who have done their job and paid their taxes, stamp duty, etc. all through the years – we have got to put a stop to it NOW.

  15. Mary Scully at 1:54 pm

    I inherated the family home in which a member of my family is living in if I was able to rent this property I would not have any problem in paying the € 200.00 as well as the tax due from the rental income. A second property used for rental income it is all right to have to pay the money.

  16. ber at 1:24 pm

    It is crazy to ask people with second homes to pay more tax. Think about it, there are some people who can afford to buy up some property now and they would be helping the builders who can’t pay the banks and the banks so that the banks can release monies for people to start their businesses in this recession. noone will want to buy 2nd or third homes and this will only make things worse.

  17. Nora Lennon at 1:02 pm

    No it is outright scandelous that we as citizens and have paid all our dues to the government have to continue proping the County Councils because they have squandered the taxpayers money – if we squandered our housekeeping money in the same way who would prop us up now – we the ordinary citizens of this country have been totaly robbed

  18. JPL at 12:59 pm

    Property tax on second and additional homes should be progressivly increased to at least the same levels of the poll tax in the UK which I understand is £3000+ for the average sized house in a good area.On the basis of the figures provided on income from the current €200 per 2nd house at €45 million, this would have the potential of raising 15 times that or €675 million.As well as providing much needed revenue for a cash strapped country, it would also defer the inevitable introduction of a poll tax lookalike scheme for all homes for a few years hopefully. This would have the benefit of widening the tax base without adding to our already inflated wage costs and would thus not delay an recovery recovery which will hopefully occur in the next few years.The downside is that it would reduce the attractiveness of housing as an investment and further lower prices but on the other hand this would divert future investment into hopefully more productive sectors leading to a faster recovery and would also result in more affordable houses.

    Regards
    Patrick

  19. wise owl at 12:55 pm

    this will surely extend the misery, all actions have reactions good and bad only time will tell. it is the vulnerable that will suffer and the clever that will look for the opportunity – there is always an opportunity for someone.

  20. Colm at 12:50 pm

    A high tax on second homes and a lower tax on primary homes is by far the fairer way to approach property tax. It is like bands in PAYE. The government need to set a minimum level (like a minimum wage) which in this case should be 1 home. You pay X on your first home, 2X on second property, 3X on third property etc.

    Usage taxes etc are a red herring as they are going to come in anyway. But the cost of these should be the cost of provision of the utility. These should be based on the usage of the individual not the financial need of the council to service the second/thord/fourth homes of their wealthier neighbours.

    If people don’t like it I’m sure the primary service of MyHome.ie will be more than happy to help them fix the problem by selling off their property. If you are in negative equity then hard luck. You gambled on a “sure thing” and it lost. You laughed at your neighbour putting his money in the bank at 5%pa instead of buying houses which you were sure would double in price every couple of years. Well who’s laughing now.

    Pay the tax or sell the house. It’s that simple.

  21. Irate Private Investor – Dublin at 12:35 pm

    Most private developments throughout the country are under the control of Management Companies and investors are duty bound to discharge an annual service charge up to €2,000.00 annually to cover maintenance, lighting and waste collection etc. Therefore, I think it is unfair that any investor should have to pay an additional tax to a Local Authority – its money for nothing !!!. I would not mind discharging a waste disposal tax to a Local Authority provided that the charge was deducted from the annual service charge of a Management Company. Also the government needs to properly regulate these Management Companies as they too are ripping off both investor and owner-occupier alike.

  22. kevin at 12:30 pm

    i hve no problem with the property tax.I do have a problem with the money going into a big black whole (public service)with no accountability.
    if there is going to be more property taxe than the bodies that receive it need to be able to account fro every penny.

  23. Nicola Watkins at 12:18 pm

    Property tax should not be increased on second homes or introduced for primary homes. We have already paid 70k stamp duty on our family home which is now worth less than we paid for it. I have an investment property which is also worth less than I paid for it and barely breaking even due to rents falling.

    The government needs to reduce it costs and stop wasting money! It needs to realise that it cant keep hitting people who have worked hard to buy property. People who buy property have paid their taxes and contributed substantially already to the economy.

    Ireland needs to be treated as a business. It needs to reduce its operating costs and employ a business manager/chief executive who knows what they are doing in order to turn the country around.

  24. alex at 12:17 pm

    Yes I think the tax on second homes is reasonable and I would not object to an increase. If you are well off enough to be able to afford a second home then you should be able to afford this tax. I do not believe anyone should have to pay a tax on their first home or primary residence though, at least unless stamp duty was scrapped at the same time.

  25. Benny at 12:15 pm

    I paid for a year in October, I have a receipt for a year from October, I will be paying again in a year in October. Don’t bother coming looking for any late payment fee, you will not get it and if you keep asking, you will get no payment at all. Gangsters.

  26. Kevin Neary at 12:14 pm

    Government should always be aware of the law of unintended consequences . One wonders how much the Government really wants the property market to recover . Insufficeint taxation in a boom and overtaxation in a recession have obvious consequences . the last thing that the property market needs is further disincentives on the rental property market at this stage .

  27. Daniel Duggan at 12:11 pm

    The €200 property tax on second homes should be replaced be user charges for services to all property with no exceptions. We must pay for the water, sewers, street maintenance and lighting, waste removal, park maintenance, etc. in our areas. That will be a bit more than €200 p.a. I would think.

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