Property tax of 0.18% in effect from July
The property tax will be in effect from July 1 2013, Minister Noonan said.Home
It will be collected by revenue, and owners of residential properties, including rental properties will be responsible for payment.
The tax will be payable on the basis of market value as assessed by owners with guidance from Revenue or owners can use a competent valour
It will be taxed on a rate of 0.18% up to market value of €1 million and 0.25% on values above that. It will be done at the mid point on bands of 50,000
For instance, a property between €150,001 and €200,000 will be valued at 0.18% of €175,000.
Exemptions will largely be the same as those for the household charge.
Local authorities will be given power to vary the rates by 15% above or below the national rates to better match funding needs.
Charge for 2013 will be a half year so on a home in the €150,000 to €200,000 band it will be €157 in 2013, €314 in 2014.
There will be a deferral option for low income persons (gross income not exceeding €15,000). Other deferral options for those whose income less 80% of mortgage falls below €15,000. Interest at 4% per annum will be charged.
More From The Irish Examiner