EBS bills could expose holiday home owners dodging levy

Investigators will scour unusual electricity patterns on ESB bills to prove holiday home owners are evading the second homes tax, it was revealed today.

Tens of thousands of owners stealing away to their seaside and country boltholes will be asked to come forward to pay the new €200 bill this summer.

Landlords will also be hit with the annual levy which Environment Minister John Gormley branded an historic revenue-raising scheme for city and county councils.

It will be the first time since the abolition of domestic rates in 1977 that local authorities will collect cash for services.

“This is the first time, and it’s quite historic, that we have introduced some form of revenue raising for local authorities since that time,” said Mr Gormley.

While the Government has details of landlords – about 200,000 properties are registered with the Private Residential Tenancies Board – officials privately admit it will be more difficult to trace holiday home owners.

“We accept it will be a challenge for local authorities,” said one Department of Environment, Heritage and Local Government official.

“They will be relying on people to make a voluntary disclosure.”

One key weapon in the armoury of the city and county councils will be a provision in the law that gives them access to ESB bills.

It is believed that electricity patterns which spike during holiday periods and dip during the rest of the year will be used as evidence against evaders.

Another deterrent to not paying will be penalties.

For every month the levy isn’t paid second-home owners will be charged a €20 fine, which will be backdated to the introduction of the tax, as well as the annual 200 euro tax.

So, if for example an owner “gets away” without paying for five years, they will be liable for €2,200 if they are detected that year.

The tax is expected to come into force on July 31.

There will be a two months “grace” period, after which property owners will be charged penalties.

The legislation will also stop owners from selling their properties until such time as any arrears on the second home tax are cleared.

Official believe city and county councils will advertise in local newspapers this summer to make holiday home-owners aware of the new levy.

Mr Gormley said he believes it will raise €40m for local authorities every year.

“It is a tax which I think is justifiable, it is not punitive in any sense,” he said.

There will be some exemptions including for the temporary ownership of a second home for a short period while moving house.