Tuesday, 17 April 2012

property tax bills that could reach €1,000

From Indpendent.ie

MOST homeowners face property tax bills of between €400 and €1,000 a year under plans drawn up by the Governments's own economic think-tank.
Those with houses worth €160,000 -- now the national average -- will have to pay €400 a year.
And families with homes worth €300,000 face a €750 annual bill while those with a home worth €400,000 would be hit with a €1,000 bill.
The Economic and Social Research Institute (ESRI) has calculated that setting the tax at €2.50 for every €1,000 the property is worth would raise Taoiseach Enda Kenny's target figure of €500m per year.
This is three times more than the current €100 household charge will bring in.
The ESRI experts recommend that those earning less than €15,000 a year should be exempt from the tax.
But doing this would put a greater burden on those on middle and higher incomes.
This would put huge pressure on those on average salaries as they struggle to meet mortgage, utility, food and motoring bills.
The authors of the report also admit that retired people could end up being big losers as they often own property but live on relatively low incomes.
The report also concedes such a tax may further knock house prices as it could act as a disincentive to own property.
Fianna Fail has warned that bringing in a tax such as that suggested by the ESRI would be "political dynamite" as four out of 10 have so far failed to pay the Household Charge.
The ESRI study released today recommends that the tax should be based on the capital value of homes rather than the value of the site, even though this would mean Dublin homeowners would be hit harder.

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