Value-based property tax is best option

One of the arguments against a value-based property tax is that it punishes a house owner who improves the value of their house by installing insulation, building an extension etc.

Opponents of value-based tax propose a site tax or square meterage-based tax instead.

The disadvantage of these alternatives is that they don’t take into account the improvement of a house by the Government building a Luas nearby, or conversely drastically disimproving it by building a sewage treatment plant.

By using square meterage or site value, two identical houses, one within walking distance of a Luas and the other without access to any public transport, will pay the same tax. Or someone living in a very large house suddenly having a sewage treatment plant would pay a tax which bears no relation to the value of their house.

This is the advantage, simplicity and beauty of a value-based tax in that it takes these factors into account. A house is not valued in isolation, but in the context of its surroundings and what local amenities and services are available.

Considering a property tax is supposed to pay for local services, isn’t it fair to value the house based on what local services are available?

Jason Fitzharris

Swords

Co Dublin