A Mayo TD has warned that householders could be facing significant hikes to their property tax bill if property prices continue to recover.
Under the property tax laws, homes have to be revalued for the tax in 2016.
As property prices have been rising steadily, this could see massive hikes in the tax bill for many homeowners, according to Fianna Fáil’s Deputy Dara Calleary.
The Ballina based representative is urging Government TDs to back what he described as a “common sense proposal from the opposition” to avert such increases.
“Fianna Fáil is committed to a review of the property tax which takes account of people’s ability to pay,” explained Deputy Calleary.
“The Government should take the opportunity afforded by the Finance Bill to repeal the revaluation in 2016. My colleague Deputy Michael McGrath has published an amendment to the Finance Act which would give effect to this.
“Government backbenchers have been voicing their concerns about this issue in recent times. If they are serious about making a real change to help people, they will back the amendment that Fianna Fáil is proposing. This is a common sense measure that should be supported.”
Deputy Calleary said the latest data from the CSO shows that, nationally, property prices have risen by 21 per cent since May of last year. “Even if there is a slowing in the current rate of growth in property prices, it is likely that the next valuation date will see homeowners having to revise the valuation basis for their property tax declaration by a large amount.
“For most properties, the effect of moving up one valuation band is an extra €90 per year. But the reality is some homeowners in Mayo could see their home rise by two valuation bands or €180 a year.”
