Byrne property price increases could lead to lpt hikes

Meath Fianna Fáil Senator Thomas Byrne has claimed that urgent action is required to prevent 'a major increase' in property taxes in 2015.

Under existing property tax law, properties must be revalued in 2016. However, property prices have been rising steadily, according to Senator Byrne, and this will result in a hike in property taxes if action is not taken.

The latest data from the CSO shows that prices nationally have risen by 21 per cent since May 2013. Recent figures from the estate agency Real Estate Alliance have also shown prices for three-bedroom semi-detached houses in County Meath have increased by 22.47 per cent up until last September.

Even allowing for a slowing in the 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 Local Property Tax (LPT) declaration by a large amount, he said.

While for most properties, the effect of moving up one valuation band is an extra €90 per year, Senator Byrne noted that 'some homeowners in Meath could see their home rise by two valuation bands, or €180 a year'.

He added: 'There is widespread concern already that people in Meath will find their water bills rising considerably once metering is fully introduced,' he said.

'The prospect of a further increase in property tax bills represents another threat hanging over households.'

The FF senator has proposed a review of the property tax, which takes into account people's ability to pay.

'The government should take the opportunity afforded by the passing of the Finance Bill in the coming weeks to repeal the revaluation in 2016,' he said. 'My colleague, Deputy Michael McGrath, has published an amendment to the Finance Act which would give effect to this.'

Senator Byrne also claimed that government backbenchers have been voicing their concerns about this issue. 'If they are serious about making a real change to help people, they will back the amendment that Fianna Fáil is proposing,' he said.