The Minister for Finance, Paschal Donohoe TD has today (Wednesday) published the Heads of the Finance (Local Property Tax) (Amendment) Bill 2021 following approval from Government at the Cabinet meeting yesterday. The Bill will give effect to a package of measures in line with the Programme for Government to address the future of the Local Property Tax.
Under the proposed changes to the regime the majority of homeowners are likely to see no change or a decrease in the amount they pay in Local Property Tax (LPT). Where increases arise, the majority will be by a single band (€90), notwithstanding significant increases in property values since 2013.
The rate of the tax is to be cut and the bands will be widened to make the changes affordable and to maintain the overall structure of the LPT.The effect of these changes combined with bringing properties built since 2013 into the charge is projected to deliver a yield of €560million.
The Bill will provide that property valuations will be reviewed every four years, and will facilitate the regular addition of new properties into the LPT. All new properties built between valuation dates will be retrospectively valued as if they had existed on the preceding valuation date and become liable on the next liability date (1 November). This will maximise the LPT base and ensure equity.