Rumours of property tax increase will be worrying for many

Rumours of property tax increase will be worrying for many

Around one million people have still to pay the new local property tax and already rumours are spreading that the charge could be set to rise next year.

Figures released yesterday by the Revenue Commissioners show that to date 637,466 homeowners have made an LPT return.

The remainder of the 1.6 million homeowners liable for the charge have until May 28th to make their payment online.

However, it will be deeply troubling for all those expected to pay to read headlines in today’s newspapers suggesting that the property tax could rise by up to 15% from 2015.

Fianna Fáil claimed yesterday that the government was planning to increase the tax after next year’s local elections and although the Department of Environment has tried to play down the situation, their response wasn’t exactly a denial.

Rather than saying this wouldn’t happen, they insisted that they had never made any secret of the fact that local authorities have been given the power to increase or reduce property tax by up to 15% from 2015.

The likelihood of a reduction is unlikely but with local authorities struggling to make even the most basic of road repairs, they could be tempted to put it up. If one local authority makes a move, the chances are others will follow.

This could prove hugely controversial though, with people currently filing their returns having already budgeted for what the tax will cost them between now and 2016.

The clause allowing local authorities to ramp up charges might have been reported on earlier this year but it was never headline news so Fianna Fáil’s latest claims will be a surprise to many.

Most worryingly though is the timing of the clause, with local authorities having until September 2014 to instruct the Department of their plans to increase (or decrease) the charge for 2015.

That means that the local elections will be over and regardless of what parties make up the local authorities at that stage, councillors will be safe in the knowledge that their seats are safe for another five years and it is unlikely that many of them would have much qualms in putting up the property tax rate.

Today we’d like to hear your opinions on the matter…

  • Did you know that your local authority could apply for an increase of the tax as early as next year?
  • Is it worrying that they might do this so soon after a local election?
  • Could you afford an additional 15% on your property tax bill, on top of what you’re already going to be paying by then?
  • Are Fianna Fáil just using scare tactics to try and win back voters?
There are 39 comments for this article
  1. Pingback: Getting Your Finances Ready For 2015 –
  2. Mary Ella at 4:42 pm

    Yes the old Green Isle pulls at the heart strings,and I know how the patriotic chords tug & pull to the homeland, but as much as we wish to return home and perhaps recapture some of the old time magic,it is worth asking the question is it still to be found or has it been lost and gone forever.
    Alas not what it used to be,gone are the old folk who would beckon you for the ould cuppa and a chat beside the fire.
    The old friendships died with the demise of the paraffin lamp and the sound of the old Trashing Mill, AH yes all gone.
    Sadly we have caught up with our ever loving yanks,and are every bit as good as them ,if not better in doing everything they do and more, Except Lead our people out of the mire,So I would have to carefully consider whether I would ever want to return to a Country of oppressed people with nothing to offer but more of the same.
    Policies tried and failed time after time, Propagate,Educate,Emigrate.Works every time.

  3. Lynne Kavanagh at 4:06 pm

    Water charges next, it’s just going from bad to worse. It’s a sad state of affairs when a man has to leave his family to work abroad and pay his bills never mind the taxes on top of that. It’s a shame.

  4. Renato Besomi at 2:26 pm

    General strike is the answer to this goverment.
    We have voted them in so we can throw them out.
    They live on our money (very well) so they should be working for us in the best way. The whole EC is a lot of rubbish anyway, as it is impossible to bring all the countries to the same standards.
    Also the Irish Goverment and the Irish people should not copy everything that the British Goverment does (Taxes,Rates,Rules and Laws) and look at other countries in Europ.

  5. Tony Lawler at 10:34 pm

    I can feel the anger of people here and I imagine lots of people are now considering not voting.If you don’t like the Tax vote them out it’s the best message you can send, I agree enough is enough.

  6. Patrick at 10:26 am

    And so say all of us Basil.Yes we have to put an end to it.Conservatives out, and that includes the Labour Party.
    Yes We Can,and We will.

  7. DR MARY MANTELLINI at 11:49 pm

    THIS GOVERNMENT HAS THROWN PROPERTY TAX AT CITIZENS WITHOUT BOTHERING TO STUDY ANYTHING AS FAR AS I CAN SEE AND GOING ON HEARSAY OF WHAT THINGS ARE LIKE IN OTHER EUROPEAN COUNTRIES.

    PROPERTY TAX SHOULD NEVER BE ON THE ONE AND ONLY HOUSE PEOPLE HAVE, BUT FROM THE SECOND HOUSE ONWARD.

    IT SHOULD BE INCOME BASED NOT AREA BASED,

    TAKING ALL THIS MONEY OUT OF THE ECONOMY ONLY RESULTS IN MORE RECESSION, IF PEOPLE HAVE TO PAY SO MANY TAXES THEY HAVE NO MONEY LEFT TO PUT INTO THE GROWTH OF THE ECONOMY.

    IT WILL THEREFORE MEAN MORE LOSS OF JOBS.

    IT WILL ALSO CAUSE MORE DIFFICULTY IN THE HOUSING MARKET WITH PEOPLE MORE LIKELY TO RENT, OR TO SHY AWAY FROM INVESTING IN PROPERTY. THE BUILDING TRADE WILL BE HIT AGAIN.

    THE POOR WILL HAVE TO GET LOANS TO PAY THIS PROPERTY TAX. AND SINCE THE BANKS ARE NOT GIVEN TO HELPING OUT, IT WILL END UP THAT THEY WILL GET INTO THE HANDS OF LOAN SHARKS.

    IT AMAZES ME HOW LITTLE THOUGHT POLITICIANS GIVE TO WHAT THEY DO. THEY AREN’T EXACTLY GENIUSES ARE THEY? BUT ONE WOULD EXPECT THEM TO BE A LITTLE MORE INTELLIGENT THAN THE LOCAL VILLAGE IDIOT!

    AS FOR INCREASES WELL THAT’S SHEER MADNESS. TO KEEP THE DAMN GERMANS HAPPY? MRS MERKEL DOESN’T GIVE A HOOT IF WE ALL DIE OF HUNGER. THEY’LL BE PRAYING TO THE BUNDESBANK NEXT.

    I HAVE LIVED ABROAD FOR THE PAST FORTY YEARS AND WAS THINKING OF COMING HOME, BUT QUITE HONESTLY THE WAY THIS HAS BEEN HANDLED (THREATS OF GOING INTO PEOPLE’S BANK ACCOUNTS OR TAKING IT OUT OF THEIR MISERABLE PENSIONS) IT REALLY DOES SEEM THAT THE COUNTRY IS BEING RUN BY A BUNCH OF NAZIS, OR ALTERNATIVELY BY ALL THE VILLAGE IDIOTS IN THE COUNTRY.

    I’M HAVING SECOND THOUGHTS ABOUT COMING HOME, THEY’D FRIGHTEN THE WITS OUT OF YOU.

    WHEN ARE THEY GOING TO REALIZE THAT THEY ARE OUR EMPLOYEES NOT OUR MASTERS?

    GOD BLESS IRELAND, LOVE TO ALL THE IRISH EVERYWHERE,

    MARY,

  8. Patrick McCallion at 11:55 am

    Peadar McMillan and Basil Miller both have got it right,

  9. Andres D. Carroll at 10:12 am

    Minister for the Environment, Community and Local Government, Phil Hogan, T.D., today (20 March 2013) published the list of unfinished housing estates to which an exemption from the local property tax will apply. A similar waiver applied in respect of the Household Charge. The new list reflects the significant progress made by local authorities in reducing the number of problem estates. Approximately 5,000 households are eligible for an exemption under section 10 of the Finance Local Property Tax Act 2011.

  10. John Joseph mcDermott at 12:15 am

    “The Local Authority will increase this tax at the earliest possible opportunity because they need the money. They need the money because their commercial rates revenue is dropping like a stone with the amount of business closures and many businesses cannot afford to pay the rates because they are not making any profit. Why do we need 32 councils for 4.5 million people? The same population as Manchester. Could we not manage with 4 councils, one per province? It is typical of National & Local Government, fleece the taxpayer to keep themselves in the style they have become accustomed to. Don’t for goodness sake, reform National or Local Government, this would mean less jobs for the boys and girls, easier to keep putting up taxes instead. As usual take the short term gain, wherever they can get it from. I am disgusted with this current Government, they promised us change, all we are getting is same old, same old. It will never change here.”
    If it upsets you so much why pay it.?
    Let them do all the running.
    Fight it,oppose it,stand up and be counted for once in your life-if only for your children’s sake.!
    The proceeds of this rotten unjust tax are going to keep the comfortable and securely employed, in their pensions and wages.
    The poor are being crucified to save the countless wasters employed in central and local government.

  11. Tom at 10:10 pm

    It will not be long before bodily harm befalls politicians in this country. The sheer disrespect they show the people who gave them their jobs is disgusting. People won’t be able to afford this and blood wil run on our streets soon. The inequality this government is perpetrating is palpable.

  12. desmond connolly at 9:43 pm

    we are not responsible for all of this chase the people that are holding big pensions etc people wont take any more i would not be surprised if there are riots etc yours desmond

  13. James at 8:54 pm

    I am deeply unhappy in this country as are countless thousands of others. I am tired being sodomized, it’s tax, tax, tax and pay, pay, pay and get little back. I left one time before but now it’s time to go for good. Bye Bye Ireland.

  14. Carl Convery at 8:04 pm

    Well half the country were repeating the euro and FF, FG & Labour spin that we needed a property tax. It’s good to see that the Irish are still lemings to spin. As the carer on Richard Bruton’s road pointed out, property taxes are the most unfair taxes in the world as they do not tax on income or liquid wealth. You can move away from your neighbours and support network as an OAP, but you are penalised with paying euro20,000 to your estate agent (1.5-2% min), 1% to your lawyer, stamp duty, movers ….
    No new tax should have been levied until the councils had purged themselves of waste, fraud & abuse. I’ve seen councils claim they couldn’t fix roads while expensive new playgrounds, rain parasols, a 2 year building project to turn fields along the Tolka river into mown grass fields with a path! The level of council spending is sick, do they not realise the State is broke, can they not hold off on unnecessery spending? During the boom they took in huge revenues and hired too many people and borrowed more money to build themselves palatial offices. What’s to become of Fingal’s and Dun Laoghaire’s offices now that they are to be amalgamated into Dublin City? What does Dublin City, Fingal etc do with their 1.2 billion a year? Why can’t we see the accounts. Why do we still have a DCC 1m – staff costs integration budget? Where are the cuts? Why do they waste so much money on non core activities? They don’t do bins, they won’t be doing water next year… why do they need so much? Rates, a plan to charge 40,000 per apartment built in DunLaoghaire … In buying our new houses we poured huge money into the councils in myriad development fees. What did they do with it all?
    Soon our property taxes will mirror the international norm, euro500 per month in Bostn, 13,000 in Brooklyn or 2,000 a month in Manhatton. Dublin should be the greatest capital in Europe based on its council spend per annum, Pompidou Cewntres to beat the band with what they already spend, a vast multiple of what other euro cities spend. I’ve already watched the waste, the abuse (tv3 on the O’Connell St mall saga & compulsory purchase) and had to step aside from a job due to officials wanting “their man” to get the salary, coruption. Why?

  15. Patrick Farrell at 6:00 pm

    I think that I was a fool to respond instantly to go met demands for charges. To think that they can just take it is really a police state. Yet NOTHING can be deducted from top polititions or bankers pensions ever mind their saleries. I am so disgusted and have no faith in any Party? Yours,Paddy.

  16. Terence O’Connor at 5:44 pm

    government and revenue Sleight of hand again. Soon there will be nothing left to feed family members. Where then will this leave contradictory Legislation regarding family care. like Child Protection and Family First Care. With no more income to Tax, Who will ENSURE the basic needs of our children??? We are now well headed into the Famine years in more ways than one, and the Government, especially the Labourside, do not care what happens to it’s citizens.

  17. Andrew at 5:26 pm

    Where does it end with this country?? I’m unemployed, struggling to get a job and all I’m getting is pay this tax, pay that charge, it really is a struggle these days. I’m beginning to hate this country and all the stupid retards that are systematically raping the spirit and hope of the people. I left before and I’ll leave again and let Ireland wallow in the stench of its own stupidity. I’m so sick of this place now I just don’t care any more…

  18. paddy at 4:35 pm

    why are people paying this tax? if there’s near a million haven’t paid, then it’s the fault of the people who have and are still paying, stand by the one’s who are not paying, of course it will go up and up until it is on par with the rest of europe, and if they have their ways as they always do, it will be the highest property tax in Europe! Mark my words

  19. Basil Miller at 3:29 pm

    Peadar McMillan has put his finger on it.

    This tax is in essence a poll tax, related to only one quantum, the supposed value of your house, and extremely regressive and unfair as it takes no account whatever of ability to pay.

    Well, we were reminded recently, after Thatcher’s death, of how a poll tax brought her down. Perhaps the same will be true of this government and the abhorrent hypocrites whose double-talk we are so fatigued by.

    Not that the Fianna Failures would be any better. In the local elections next year, the only way people can put up any bulwark against hikes in the LPT tax rate is to vote in Bolshie independents, leftists, and Shinners, and avoid any of the established parties.

  20. David at 3:27 pm

    {Slaps forehead} And are FF the one’s that got you into this mess in the first place?

    Voting either FF or FG makes you little more than a little, green ping-pong ball.

    Wake up folks!

  21. Conor at 3:02 pm

    I live just outside Toronto and pay the equivalent of 5,000 Euro annually in property tax (not an uncommon amount here). Local services are fine but local government is oversized with inflated budgets. Some pensioners can’t afford the tax so they sell and move to less expensive (rural or rented retirement) options.
    My point: Local taxes and inefficient government are the norm worldwide- Fine Gael, Fianna Fail or the raving monster loony party – they will all tax you in one form or another and they all use these funds inefficiently. Get on with your life, ignore these buffoons and focus on the positive.

  22. Ann McCarthy at 2:15 pm

    Thanks Damian didn’t know that I never paid the last property tax and wont pay this one it makes my blood boil, these politicans are on another planet. Another two brutal budgets they tell us enough is enough you can’t get blood from a turnip. People haven’t anymore to give when will then learn Austerity is not working. Tax the rich and wealthy?

  23. Andrew at 1:44 pm

    Fully agree with Damian Gibney join attack the tax even if you have paid the tax, Govt. needs a message sent and all the complaining online does not appear to be getting through to them so take some action.

    I was not made aware that I could be subjected to a property tax on my home when I bought it to rear my family in, I had options:

    Local Authority housing, No Tax there

    Private rental, No Tax there

    The only fair way to introduce any such tax or rates would be to advise people buying or changing homes for example:

    All houses sold / bought from 1/6/2013 will be subject to the property tax.

    That way the buyer has the option as to where they wish or think they can afford to live based on the valuation.

    Yes it would mess with the house prices maybe even encourage more to emigrate but there would be some semblance of honesty about it.

    Of course don’t expect honesty from the professional liars elected in this country.

  24. B ni bheaglaoich at 1:44 pm

    I’m still waiting for this nationwide protest from the million who have not paid..WHEN ARE WE GETTING OUT ON THE STREETS to assert and DEMAND our rights?

  25. Rita at 1:10 pm

    The Local Authority will increase this tax at the earliest possible opportunity because they need the money. They need the money because their commercial rates revenue is dropping like a stone with the amount of business closures and many businesses cannot afford to pay the rates because they are not making any profit. Why do we need 32 councils for 4.5 million people? The same population as Manchester. Could we not manage with 4 councils, one per province? It is typical of National & Local Government, fleece the taxpayer to keep themselves in the style they have become accustomed to. Don’t for goodness sake, reform National or Local Government, this would mean less jobs for the boys and girls, easier to keep putting up taxes instead. As usual take the short term gain, wherever they can get it from. I am disgusted with this current Government, they promised us change, all we are getting is same old, same old. It will never change here.

  26. john geraghty at 1:09 pm

    I thought the dear leader had exhausted his broken promise portfolio ,now this 15% increase.
    The universal health for everyone won’t be given,I’m glad it’s Friday.There will be no votes in our home for Fine Gael and Labour in the coming local elections.Over 300,000 have emigrated.People dying on our streets and alleyways and we borrow over 600,000000(six hundred million euro) to give to other countries,more than the LPT will bring in a year.Please Please someone stop this.

  27. Tony at 12:59 pm

    Why are we surprised, this government have lied to us all along the way. But the others wouldn’t be any different, we really do need to protest

  28. Brian at 12:54 pm

    Not a lot left unsaid.
    Our elected leaders who said we will look after our people, have in fact robbed most of their citizens. The unashamed greed continues to thrive at the very top and at the core of our misfortune, and they laugh at us when we try and stop them stealing our money again and again.When are we Irish people going to stand up and be counted, and say enough is enough. We have come to understand that we are being misled,misinformed and do not believe we are being treated fairly.
    A total and utter disgrace,but what else can we expect from our loyal and trusted government.
    We can be certain they will not surrender to the Bankers greed,nor will they deviate from honoring the most dishonest,corrupt pledges ever given by any governing body in the history of this country.
    We have witnessed a catastrophic injustice handed down to our people without a word of apology.
    What is more we will just have to pay until we say otherwise.
    So wake up good people of Ireland.Know who is governing or should I say milking this impoverished little Honey Pot.

  29. damiangibney at 12:23 pm

    if you join up with attack the tax .com for 2.5 euros you get a shareholding cert ,this cert then makes you immune from prosecution you simple return the form back to them after you apply your sticker and cert no ,,,go on line to attack the tax.com and see the videos on line they will explain everything that you need to know ,,,so dont worry we can and will protect you ,,thank you

  30. john smedley at 12:04 pm

    Property tax increases are inevitable. I believe prices will rise to those of the uk within the next 7 years. Meaning, (by that time) 1300 euro a year for your average 2 up 2 down semi-detached 2500 for a large 4 bedroom detached. And don`t expect to see an awful lot for your money. Central government will reduce funding to local authorities, local authorities will have to increase their charge. as the property tax increases. Central government will then trumpet that they have `cut taxes`.

    The state now has a cow it can milk all day long. No real redress for citizens, no escape really. Only thing people can do is involve themselves with the politics of it all. Somehow (and I don`t know how) politicians need to be held to account.

    Thoroughly depressing summary and I apologise but I think I speak the truth.

  31. alec fox at 12:03 pm

    Is it really suprising at all with continued CORRUPT Govvernment that have gone back on everything they have said since the lies that they said to fool people into voting for them.

    Do they want this once great country to end up like Greece with people rioting on the streets. Because this CORRUPT system will BREAK or some poor sod doing his job ( all be it a low scumbag job ) of knocking at doors for the charge will get broken.

    It is being as what is normal in this counrty these days of the person struggling is getting shafted where as the rich is getting away with it.

    Anyway I have to go as my blood is start to boil and i am thinking of opening the door to one of the collector and shuting the door on his head a few times and then ask what is it you want to collect. come back any time……… Except they are sending the bullies around to collect as they wouldnt get their hands dirty. Even though they are a filthy as they come.

  32. ID at 11:53 am

    Really good post by Peadar MacMillian, highlights the folly of the current government!

  33. Peadar MacMillan at 11:16 am

    This is interesting. I worked in a house on the same Road where Richard Bruton resides – Griffith Avenue. The client was a pensioner living in her parents house and her only income is the non – contributory OAP. A two minute walk from Mr Brutons who earns slightly more than the non contributory OAP.
    This pensioner has to pay a similar rate of tax -crazy, crazy, and once more crazy.
    I am old enough to have an uncle who died in the civil war and who was with Michael Collins as a 13 year old message runner originally. I know if he was alive today and seen this totally unequitable unfair tax – he would be apalled.
    The excuse that most other countries in Europe have a property tax does not hold – as most of these countries rent and most properties are owned by Companies and are highly regulated as regards rent rates etc., unlike ireland.
    The simplest solution would have been to increase everyones taxes by another 3 percent and to allow a mortgage and child relief as was in years ago under Fianna Fail.
    This government is going to fail to create employment as it is stifling the domestic economy which is what will cause money to circulate and create jobs.

  34. Paddy at 11:11 am

    Death and taxes, always dependable………

    But never forget that overpriced property got us into this mess, dont let it happen again!

  35. Katie Gibney at 11:03 am

    I am totally disillusioned with this broken country of ours. As a result of all the brown envelope narcisstic gougers all the good honest of this country are now broken too. Broken financially, emotionally and lost.
    Now we are expected to pay even more !! These muppets need to get real.

  36. David Sheedy at 11:02 am

    I was not actually aware of the fact that an increase could come as soon as 2015 and I don’t think that any Government minister made any reference to it in the run up to the LPT registration.

    In fact I got the strong feeling that it would be perhaps three years before we faced the inevitable hike and I certainly could not afford 15% increase at this time or in 2015.

    It may be political maneuvering by FF but they have highlighted something that the Government have chosen not to be up front about and this is just another example of the arrogance of the Minister in question and of a Government who think they have the right to impose any taxes they wish in the name of national recovery

    David Sheedy

  37. Mac at 11:01 am

    It would be naive for anyone to assume that the current trawl for LPT was the end of it. O course it will be raised and raised again and again.. It’s been done with EVERYTHING from road tax to VAT.. You are born naked and this government will make sure you go the same way.. with nothing..

  38. Mac at 10:56 am

    I’ve paid ALL my property taxes… but what irks me most is the lack of value for money.. I feel like an absolute Gobsh1te continuing to to pay and pay and pay.. Road tax to fund bad roads, high taxes for the worst health service and criminal justice system in Europe.. Maybe we are genetically encoded to be gobsh!tes and tip our cap to the authorities..

  39. Colm at 10:48 am

    It’s sad that this was just the 5th or 6th item on the news last night. We are so used to this government lying to us it is hardly even newsworthy any more.

Leave a Reply