Revenue to advise on house values for upcoming property tax

revenue-property-tax

Letters from the Revenue about the upcoming property tax will be sent to homes up and down the country outlining how much they think home owner properties is worth. These notices which will be posted out within the next few weeks will also state how much they should pay in property tax. However, anyone liable to pay the tax will be able to assess the value of their own home – but this freedom will not give free license for property owners to give any value to their home.

When the Government announced that the charges for the property tax would be based on self-assessed valuations, concerns immediately rose over people undervaluing their property in order to pay the least amount possible. Therefore, the Revenue is insisting that people use their “indicative value” or the figure they deem the property to be worth in their assessments.

Indeed, those who are seen to use figures much lower than the Revenue’s will be subject to inspection and fines, but those using the Revenue’s valuation will not face any investigation. Figures issued by the taxman will take into account a range of criteria such as the location of the property, its overall condition and improvements made. There will be some scope by the Revenue to adjust its initial valuation downwards if the house is not in good condition.

Homeowners should expect to receive these 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. However, first time buyers who buy a house before the end of 2013 will be exempt from paying property tax until 2016.