Property tax turmoil as helpline besieged

Confusion over self-assessment for the property tax saw 4,000 people clog the Revenue helpline yesterday.

The 24-hour total amounted to a chunk of the 15,687 telephone queries received since the information service was launched more than three weeks ago.

Just over 7,000 self assessment returns have been received by the Revenue Commissioners from people who have valued their own properties ahead of the introduction of the controversial tax in July.

There have been over 688,00 hits on the valuation guidance website.

The dramatic increase in calls to the Revenue prompted the commissioners to move to dispel common misconceptions about how the new tax will be imposed.

They said the property value estimate included in letters sent to owners only became relevant if householders do not respond with their own value assessment.

A spokesperson said: “Don’t ignore the return because if you do, Revenue will pursue collection of the estimate. Revenue would like to clarify that it has no role in relation to the designation of properties as exempt from the property tax on the grounds that they are located in an unfinished housing estate.”

Homeowners, who fail to register to pay the new property tax have been warned it will be deducted from their salary, social welfare payment, or bank account as the Government gets tough after the mass boycott of the €100 household charge last year.

Owners will be billed for six months this year, with Revenue in the process of posting estimates of what that bill will be to 1.6m property owners.

Homeowners must file by a return containing the estimate by post, or online by May 28. Owners are also asked to indicate their preferred payment method from six choices.

Revenue’s estimate of house values rise in bands of €50,000, and the tax will be calculated as 0.18% of the mid-rate of the band the house falls in.

Sinn Féin leader Gerry Adams said his party would on Monday put forward legislation to abolish the property tax and replace it with a wealth tax and other revenue-raising measures.

“We are proposing alternative sources of revenue, including a wealth tax and an increase tax in on higher incomes.”