Household charge & Non Principal Private Residence Charge (NPPR)

The Household charge is to cease with effect from 1 January 2013.  While, the NPPR charge is to cease with effect from 1 January 2014. 

Unpaid arrears together with any interest and penalties as at 1 July 2013 will be collected through the new property tax system.  The rate of unpaid arrears in respect of the Household charge will increase from €100 to €200.

Local property tax

A local property tax on residential properties, including rental properties will be introduced with effect from 1 July 2013.  Collection will operate through a self-assessment system and will be administered by the Revenue Commissioners.

A half year charge will be payable in 2013 with a full year payable in subsequent years. 

Tax will be charged on the market value as assessed by the owner.  It will be levied at a rate of 0.18% for the first €1,000,000 and a rate of 0.25% will apply to any excess value over €1 million. 

The 0.18% rate is to remain unchanged for the lifetime of government, however a “local decision factor” allowing local authorities to vary the rate by up to + / - 15% will apply from 2015. 

The initial valuation obtained by owners will be valid up to and including 2016.  Valuation guidance will be issued by the Revenue Commissioners.  Valuations obtained from a competent valuer may also be used. 

Certain exemptions will apply in respect of the property tax.  These will be similar in nature to those introduced in respect of the household charge. 

In particular an exemption will be available for any new or previously unoccupied homes acquired before 31 December 2016.

The three year exemption will also apply to first time buyers who acquire homes in 2013 and residents in unfinished estates.