Property tax: Freezing of levels welcome

The decision by the Government to effectively freeze property tax to current levels will be welcomed by the hundreds of thousands of householders fearing that an increase in the value of their properties would mean they would have to dig even deeper to keep a roof over their heads.

As the Cabinet prepared to meet in Lissadell House, Co Sligo yesterday, Finance Minister Michael Noonan said there would be no ‘sudden shocks’ for property owners in terms of increased property taxes in the next budget.

When homes and properties were given valuations in 2013, the Government gave a commitment that the tax would remain unchanged until 2017.

However, since 2013, Irish property prices have risen by up to 50% and are likely to rise further by the end of 2017.

As revealed by the Irish Examiner last month, the Government was advised to freeze property tax levels until 2020 amid concerns that homeowners would face hikes in their bills after rises in home values. This was on foot of a review of property tax levels carried out by former senior public servant Don Thornhill.

The decision is politically astute in terms of next year’s general election but it also is a triumph for commonsense.

The fact that a home may rise in value does not mean its occupants suddenly enjoy an enhanced ability to pay increased taxes on it.