Within the next 2 weeks or so, you will more than likely receive a letter from Revenue with details of the new Property Tax (LPT).  Your may not even receive a letter, but you will still owe the tax.  This is a self-assessed tax and it will be up to property owners to decide how much property tax they are obliged to pay and then to make sure they pay what is owed to Revenue.  With very few exceptions, anyone who owns a Residential Property in Ireland, whether owner-occupier or landlord will have to pay the tax.

Revenue will provide owners will an initial estimate of  their property tax but it is up to each owner to decide on the actual valuation of their property and pay the tax owing.  In fact, Revenue can pursue individual owners for under-payment of the tax, even if the owner has paid the amount that has been recommended by Revenue.  Property owners are expected to take into accounts factors which may affect the value of their property, such as the state of repair, home improvements, extensions etc.  The tax is calculated at 0.18% of the value of the property and only half the annual tax is due for 2013, with the full year’s tax due in 2014.  Revenue have referred property owners to the Irish Property Price Register at www.propertypriceregister.ie to assist them in valuing their properties.

Properties valued below  €1m, will fall into market value bands of €50,000, i.e. €100,001 – €150,000; €150,001 – €200,000 etc. The tax is calculated at the mid-point of each band, so two properties valued at €165,000 and €195,000 respectively, will both pay €157 in property tax this year, and €315 in a full year (2014), which is 0.18% of €175,000.

The market value of your property on 1st May 2013, will form the basis for the property tax due for 2013, 2014, 2015 and 2016.  Property owners do not have to take into account any subsequent improvements to their property or any changes in market value up to 2016.  Revenue will be issuing guidelines to property owners on how to value their properties and have said that if owners follow the guidelines honestly, they will accept owners’ property value assessments.

If you complete your return online, you have until 28th May 2013 to do this but paper returns must be submitted no later than 7th May 2013.  The correspondence from Revenue will give you a Property ID and PIN, to enable online submission.  You will also need your PPSN.  There will be a number of payment options, from single payment option, credit/debit card, salary/occupational pension deductions or deductions at source from social welfare payments. A single payment will be debited from your bank account no earlier than 21st July 2013.  Installment payments through Salary/Occupational Pension deductions will commence in equal amounts from 1st July 2013, and direct debit installment payments will commence on 15th July 2013.  Whatever payment option you choose will continue for 2014 and subsequent years, unless you advise Revenue that you wish to change your payment method.