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THE GOVERNMENT HAS signed off on changes to prevent a jump in the amount of Local Property Tax (LPT) being paid by the majority of homeowners.
The changes will mean that most homeowners will remain in their present valuation bands, despite continued rising house prices across the country.
The Local Property Tax is an annual charge on all residential properties in the State which came into effect in 2013. Essentially, if you own a residential property you must pay the tax.
The amount you pay is based on the value of your property, which is self-assessed. There are 19 different bands to cover increasing property values.
The next valuation date for LPT is due to take place on 1 November this year, as legislation provides for a revaluation every four years.
Finance Minister Paschal Donohoe this morning informed Cabinet that if this revaluation goes ahead without any amendments to the bands or rates, around 70% of properties would move up at least one band of LPT.
This would result in a significant increase in tax due for most homeowners.
The General Scheme of Finance (Local Property Tax) (Amendment) Bill, which was approved by Cabinet this morning, will see the valuation bands widened by 20%, while a new base rate of 0.0906% will apply – down from 0.1029%.
The Department of Finance said that this will ensure that a predicted 96% of homeowners will remain in their existing band.
The new bands are as follows:
Those with properties valued at €525,000 or lower will pay between €5 and €25 extra a year, while properties above that value, or properties which move up a band, will see a higher increase in their LPT charge.
Fixed LPT charges will increase by between 5% and 6% for properties valued under €1.26 million.
Properties valued at between €1.26 million and €2.1 million will see a rate of 0.25% charged, while there will be a 0.3% rate applied on properties valued at over €2.1 million.
Local authorities will now be able to vary LPT upwards by up to 25%, but the maximum they can vary downwards by will remain at 15%.
“By asking property owners to contribute a small amount more than they do at present, LPT is projected to yield in the realm of €45 million or 8% in additional funding for local authorities, which will go towards local services,” Donohoe said this morning.
The Minister said asking people to pay more LPT is “a way in which we can ensure that Local Property Tax continues to pay more in the years ahead and contribute more to our tax collection, but doing so in a way that aims to be affordable for those who are paying it”.
“I’m making this argument conscious of the fact that prices are still high for very many and the cost of living still matters to households that will be asked to pay,” he said.
The Government is currently considering exempting detached cabins and modular-style buildings placed at the end of gardens from planning rules.
Asked if property owners who choose to build a modular home on their property could face a higher rate of tax, Donohoe said that is the case.
“If any change takes place in a property adjacent to a home that affects the value of the property overall, that has to be included in the valuation that you self assess, your Local Property Tax,” he said.
“That remains the case. So it could, for example, influence where somebody is in the band by which they then calculate the Local Property Tax.”
He said the change in relation to cabins or structures in a property “is consistent with the Local Property Tax”.
“The way the Local Property Tax is based is you have to give a valuation on everything that is contained within your property, and any measures to put in place additional accommodation within that property are consistent with how the Local Property Tax is calculated.”
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There are people sleeping rough right outside the Dáil. Is it that hard for her to spare 30 mins to go out and meet them, This shows how out of touch Labour have become.
What would be the point? Going around shaking hands and getting a photo op helps nobody. She already knows they are homeless.
Actually Kieran I have walked past the Dail on a daily basis for several months and not once did I see a homeless person sleeping rough on Kildare Street.
Now that being said, all along St Stephens Green, Lincoln Place, Westland Row etc… I see many people who are homeless and the situation is very bad, something the Minister and her colleagues like to brush under the carpet.
Do it Jan!
Go Jan Go
?
I’ve seen numerous articles about homelessness on the journal and the majority of them have been about solely Dublin, obviously Dublin has more homeless due to being the capital but still other cities in Ireland have serious problems with homelessness too and receive much less funding and awareness, it’s rampant in Cork too and it’s extremely unfortunate, the government needs to tackle this seriously
The homelessness problem in Cork city is at crisis level.
It really is, I walked down Patrick st from McDonald’s to tesco on Paul street today and there was 7 men begging, disgraceful
Most of those on Patrick St. aren’t known to homeless services. Like Dublin I’m sure homeless people don’t generally congregate on Patrick Street.
are ichh a real charity and how are they any different than focus or simon or svdp or mcverry all of whom the government are working with?
If they’re not a real charity then the author needs to amend title of post for obvious reasons and ask ichh why they need to exist whilst there’s many other support groups registered and otherwise. Scent of a real story there.
Jan lost all credibility to speak out as soon as she accepted a bag of extra money to become a super junior. It seems that €130k wasn’t enough for the former socialist and she needed €17k to top it up. She will not run for the next Dáil, I would lay money on it. In any case Quinlivan will take her seat.
You cannot have the elite of our society (or so they think) mixing with the riff raff, just wouldn’t do old bean.
I have no doubt that Housing Minister Jan O’Sullivan regularly visits services for homeless people.
However I question if these visits are during the day time in the facilities provided by homeless service providers as opposed to visiting homeless people on the street as Inner City Helping Homeless have requested?
I counted 8 people sleeping rough in the doorway to SIPTU this morning, it is crazy.
You dont expect Jan to rub shoulders with the homeless……Minister in title but only interested in media exposure ,soundbites,cheap spin and pension to look forward to……….My suggestion is if Jan wont visit the homeless on the streets then let the homeless come calling around tonight to her lovely home and have a reality check about the bullsit she spins……….
If she was only interested in media exposure, sound bites and cheap spin then she would have met them.
If she does nt see them she can carry on with fg and lab refusal to act on the homeless crisis that has being caused by their incompetence
Why dont the homeless charities gather the homeless and ask them too sleep during the daytime outside the dail where there is a lovely guard on duty too watch over them as they sleep safely. Shame the fat pigs in the buildings. .
Ms. O’Sullivan was elected to serve the people , remember? I now order you to call on these unfortunates.
Jim Kemmy must be turning in his grave ..
Sadly, men of the quality of Jim Kemmy don’t come around too often.
Meet them please and let’s spend some of the otherwise waisted money on helping them! If 5.3 million can be found for the banking enquiry ( which will probably be of little or no value) please find some more for the homeless and start looking after our most vulnerable citizens.
Chicken!
Perhaps Journal might contact the office of St Jan of Calcutta and get a breakdown of what her “regular” meetings with the homeless actually are?
How many times, for example, has she accompanied Inner City Helping Homeless volunteers on their rounds or the Dublin Simon Community?
Regularly? My a*se!
Why on earth would miss prim and proper who is above all humans like the rest of them stuck up idiots ever go near a dirty homeless uneducated useless loser in home less shelters.
How dare they ask her or any TD to dirty their air with such things.
Good idea John.I call on her to call on them as well and ask as many as possible to do so and also ring your local TD’s and let them know we expect them to at least listen to the people that voted for them.
I would not reccomend the newly formed ichh joining the networks of other homeless charities ye are doing striking work jan would love to link yas up to whip yas into line massage the figures and make her look like she is doing a great job would love to see more corporate donations going your way don’t be tempted by goverment funding it comes with rules and regulations
Genuine invitations to government ministers are never sent via twitter, but congratulations to @HomeInner for the 37 retweets and upping the follower count to a whopping 288. Well done.
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