Property owners across Ireland will soon begin to receive the first tranche of property value notifications from Revenue. These will be designed to provide owners and ‘indicative value’ on their homes and will serve as the basis on which property owners must then ‘self-assess’, which Revenue will then use to calculate the property tax.
Revenue was charged with managing the collection of the property tax following the property registration debacle in 2012, where an estimated 30% of property owners failed to register.
Property owners should expect to receive their notification letters in March and will have to return the assessment forms by post before the 7th May 2013 or the 28th May 2013 if the assessment is submitted through the Revenue website. The property tax will come into effect on the 1st July and will be levied at a rate of 0.18% of house value. For 2013, owners will only have to pay for a half-year but will have to pay for a full year for subsequent years.
The majority of property owners will be liable for the new property tax although there are some exemptions, including:
1 . Residential property that is used wholly as a dwelling and is liable to commercial rates is exempt.
2. Property that was formerly the sole or main residence of the owner but that has been vacated by its owner due to long-term mental or physical infirmity and where no other person occupies the property – is exempt. (Period of absence must be 12 months or more OR a doctor must certify that the owner is unlikely to return to the property).
3. Registered nursing homes are also exempt.
4. Residential properties that were constructed by a builder or developer but remain unsold and have not yet been used as dwellings and form part of their trading stock – are exempt
5. Residential properties that are owned by a charity or a public body and used to provide accommodation to persons with disabilities or the elderly to enable them to live in the community are exempt ( A ‘‘charity’’ must be granted an exemption for tax purposes by the Revenue Commissioners to avail of this exemption.)
6. Houses in certain unfinished developments as prescribed by law are exempt. (A list will be published – and it will not be the same properties as in 2012)
7. New or previously unused properties that are purchased between 1 January 2013 and the end of 2016 will be exempt until the end of 2016
8. Second-hand properties purchased by a first time buyer between 1 January 2013 and 31 December 2013 …..will be exempt until the end of 2016.
Properties owned by Local Authorities or Social Housing providers will not be exempt unless it is provided to people with special housing needs such as the elderly or people with disabilities. Liability will rest with the local authority or social housing organisation as owner.