The proposed changes will see tens of thousands brought into the property tax net while others will see their tax bill rise.
Who will be affected by the changes announced to the Local Property Tax??
All homes will be subject to a re-evaluation process under the plans announced by the finance minister.
A new valuation system is to be introduced this year.
What does the new valuation system mean for me ??
It has been indicated that, under this new valuation system, most homeowners, who are already paying LPT will not face an increase.
Those who bought newly built homes since 2013 and were not previously paying LPT will now be liable to pay the tax.
It is thought that this change will bring tens of thousands of homeowners into the property market tax net.
For those homeowners who purchased a new home since 2013, Paschal Donohoe has said they will be brought into paying LPT in a way that is affordable for the country.
He said the re-valuation of homes will be done in a way that recognizes the affordability challenges facing families.
Homes have not been valued since 2013 and while many properties will have increased in value significantly during the intervening years, the majority of people will not face an increase of more than €90.00 a year.
How many people are likely to see their LPT increase??
According to the cabinet memo presented to ministers, Mr. Donohoe and his officials estimate that :
- 11% of homes will see a decrease in LPT
- 53% of homes will see no change in the LPT applied
- 33% of homes will see an increase of up to €100 by moving up one band while
- 3% of homes will see a larger increase of up to €200.00 by moving up two bands.
When will the new changes begin??
The re-valuation of all homes is set for November and the first bills are expected in early 2022.