Household Charge to be replaced with more equitable Property Tax in 2013/2014 « MerrionStreet.ie Irish Government News Service

The Environment Minister Phil Hogan today announced the establishment of a high level and focused Inter-Departmental expert Group to consider the structures and modalities for an equitable valuation-based property tax that will replace the current €100 Household Charge.

 Minister Hogan said:

Ireland is one of the last countries in Europe to introduce property-based charges to fund local services. The tax base in Ireland needs to be broadened but the focus must move away from taxing people’s work to lessen the impact on growth and to support employment.

The Minister stressed the Government’s firm commitment to introduce a valuation-based property tax to replace the Household Charge at the earliest opportunity. The group, which will be independently chaired by Dr. Don Thornhill and comprised of senior officials from relevant government departments, will report by the end of April.

The expert Group is to report to me on the design, scope and implementation of the property tax and I intend to bring proposals for an equitable valuation-based property tax to replace the Household Charge to Government as soon as possible thereafter.

The residential property tax is to:

·         Meet the immediate financial requirements of the EU/IMF programme;

·         Provide a stable funding base for the local authority sector in the medium and longer terms incorporating an appropriate element of local authority responsibility subject to any national parameters;

·         Ensure the maximum degree of fairness between and across both urban and rural areas;

·         Be collected centrally by the most cost efficient and effective means;

·         Facilitate easy and/or phased payments by households;

·         Be easily determined (e.g. on a self assessment basis), and having regard to the information currently available (or to be made available through registrations for the household charge) on residential property and/or house ownership details.

The Minister welcomed the fact that over 66,000 residential properties have registered for the Household Charge, equating to €6.6 million.

I would like to acknowledge and thank those people who have registered their properties and paid the Household Charge at this early stage. The large numbers of people paying the charge is a clear indication of compliance with the legislation and the acceptance that it is necessary to fund vital local services in our communities.

The €100 will go towards paying for essential local services: public parks; libraries; open spaces and leisure amenities; planning and development; fire and emergency services; maintenance and cleaning of streets and street lighting. These services are integral to the quality of life in local communities.

Click here for the full press release.

via merrionstreet.ie

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