Q&A: What do the property tax changes mean for me?
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This afternoon, the Government confirmed changes to the Local Property Tax (LPT).
The proposed changes will see tens of thousands brought into the property tax net while others will see their tax bill rise.
Here we look at what the changes will mean for you.
All homes will be subject to a reevaluation process under the plans announced the Finance Minister.
A new valuation system is to be introduced later this year.
It has been indicated that, under this new valuation system, "most homeowners" who are already paying LPT will not face an increase.
Those who bought newly built homes since 2013 and were not previously paying LPT will now be liable to pay the tax.
It is thought that this change will bring tens of thousands of homeowners into the property tax net.
For those homeowners who purchased a new home since 2013, Paschal Donohoe has said they will be brought into paying LPT in a way that is affordable for the country.
He said the revaluation of homes will be done in a way that recognises the affordability challenges facing families.
Homes have not been valued since 2013 and while many properties will have increased in value significantly during the intervening years, the majority of people will not face an increase of more than €90 per year.
According to the Cabinet memo presented to ministers, Mr Donohoe and his officials estimate that:
- 11% of homes will see a decrease in LPT;
- 53% of homes will see no change in the LPT applied;
- 33% of homes will see an increase of up to €100 by moving up one band while
- 3% of homes will see a larger increase of up to €200 by moving up two bands.
The revaluation of all homes is set for November and the first bills are expected early in 2022.
The Government expects to raise €560m per year once the changes come into place - up from €480-490m annually.
Money collected from the tax is to be retained within the county and go towards local supports and services.
Currently, 80% of money raised stays within the area but this will change from 2023 when 100% will be retained in the local authority.
People Before Profit's Richard Boyd Barrett has called the proposal an "unjust punishment of homeowners".
He said the tax is archaic and called on the Government to increase taxes on those who own multiple properties and corporate landowners instead.
"People in this country are at the pin of their collar with huge rents, some of the highest mortgage interest rates in the EU and generally an extortionate cost of living," said Mr Boyd Barrett.
"The government instead of targeting ordinary workers who happen to own their family home need to tax people on very high incomes, millionaires and corporate profits."
Labour leader Alan Kelly has said that he will wait until the full details of the proposed changes are revealed tomorrow but said any change must be affordable and fair.