They say a rising tide lifts all boats, but rising property prices could sink struggling families even further into debt when homeowners’ Local Property Tax (LPT) is reevaluated in 2019.
As asking prices for Irish properties climb ever higher, the majority of property owners will be faced with a steeper bill for LPT, which is directly linked to the value of the house.
The self-assessed tax came into effect on July 1, 2013, when homeowners were asked to pay for half the year. In 2004, the full year’s charge was demanded.
The amount of LPT due for 2016 depends on the value declared for the property on May 1, 2013 and the LPT rate applying to your property for 2016.
Local authorities can vary the basic LPT rate on residential properties situated within their administrative area, increasing or decreasing it by up to 15 percent from the base rate. This is referred to as the “Local Adjustment Factor” (LAF).
15 local authorities have adjusted the LPT rate for 2016 with five local authorities increasing their rate compared to last year; Cork County Council, Limerick City Council, Mayo County Council, Westmeath County Council and Wicklow County Council.
Based on current asking prices on the property website Daft.ie however, families face LPT hikes of up to 150 percent when the rates are reassessed. According to reports, this equates to an increase of up to €146 in Dublin 14 and more than €100 in Dublin 7 and Dublin 15.
Homeowners in Longford face the biggest increase in Leinster at 142 percent. Meanwhile in Munster, Cork City property owners, who have seen the value of their properties rise by 37pc, will see rates increase from €315 to €344 and Galway dwellers face a hike of 40 percent.
Do you agree with LPT rate hikes? Let us know on Twitter @HerFamilydotie.
