It’s being claimed that money raised from the changed local property tax will stay locally and not be distributed to other counties, according to the Finance Minister.
New bands for the tax have been announced with fresh valuations to take place in November for the first time in eight years.
100,000 households that have been exempt from the local property tax since 2013 will be brought into the net with the first bills due early next year.
The Department of Finance estimates 11% of people will see a decrease in their property tax bill; 53% will stay on the same rates while the new bands will mean increases of up to 100 euro for a third of households.
Finance Minister Paschal Donohoe says they’ve tried to keep the prices fair, while taking into account rising property prices:
People will have to self-declare the value of their home to Revenue.
Minister Donohoe has also confirmed money raised locally will be spent locally from 2023 or 2024, ending the previous practice where larger local authorities distributed revenue from the tax to smaller counties.
A Donegal TD has today described the changes to the local property tax as a form of revenue generation by the government.
A new valuation system is also going to be introduced meaning some homeowner’s bills will go up, while others will decrease.
Independent Donegal TD Thomas Pringles says the reason the Government are making the changes now is to avoid a backlash from the electorate in the future.