Details of new Local Property Tax rates have been published by the Department of Finance today.

Rates have been cut and bands widened, while changes have been made to include new properties built since 2013.

From now on, new homes will be brought into the system each November and all properties will be revalued every four years.

The department estimates the new measures should raise approximately €560m a year for the Exchequer, an increase of about €70m on what is currently raised from property tax.

In a statement, Minister for Finance Paschal Donohoe said that the majority of homeowners are likely to see either a decrease or no change.

"Where increases arise, the majority will be a single band, €90," he added.

Under the changes, all properties will be revalued on 1 November this year.

According to the CSO, house prices nationally have risen by 90% on average since their low point in 2013.

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According to an analysis by the Department of Finance, 11% of property owners may see a decrease in their tax, while 53% may see no change.

It said 33% may see their tax go up one band, up to €100, while 3% may see a jump of two bands or over €100.

The exemptions for people who bought in "ghost estates" will lapse, while exemptions for people in pyrite damaged homes in Limerick and certain eastern counties will be phased out.

A temporary exemption will be given to people whose homes in Donegal and Mayo have been damaged by faulty concrete blocks and are under the Defective Concrete Block Grants Scheme.

Income thresholds for deferrals have been raised to €18,000 for a single person and €30,000 for a couple.

The minister has said changes to the property tax will see all homes taxed fairly.

Mr Donohoe told the Dáil today that the way the property tax bands will be structured and delivered would be affordable.

The new charges could be presented to homeowners next January and February, he said.


Read more:
Q&A: What do changes to Local Property Tax mean for you?
Could a redesigned property tax improve local public services?


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People Before Profit TD Paul Murphy, meanwhile, has said he is in favour of taxing wealth including property, but he is not in favour of taking the family home of ordinary workers.

Speaking on RTÉ's Today with Claire Byrne programme, similarly, he said, there may be people in the older age bracket with valuable home but who do not have a matching income.

Mr Murphy said a wealth tax on the very rich should be introduced and that this would raise substantially more revenue than the property tax.

Mr Murphy said it would be fairer if there was tax for additional homes.

This, he said, would ensure that those who have properties as assets, as opposed to just family homes, are "absolutely taxed on them".

He said the policy does not take into account the mortgages that people are paying and that the property tax was passed onto local council tenants in Limerick.

Mr Murphy said that councils should introduce differential rates so that big businesses absorb more of the costs than small businesses.

Auctioneers have said that increases to property taxes will not match the massive growth in house prices since 2013, when houses were last assessed.

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Paul Murgatroyd, of DNG auctioneers, told RTÉ's Morning Ireland that there has been steady price inflation in the market since 2012, with house prices in Dublin effectively doubling in that time, with average price jumps of 93%.

He said that in normal circumstances that would lead to increased property tax liabilities in line with price rises in Dublin, but the band and rate changes will ensure the tax rise will be "nowhere near that amount".

Mr Murgatroyd said the increases should be "palatable" to taxpayers as the money is ring-fenced for local authorities to provide services.

Auctioneer Helen Gallery, from Ennis in Co Clare, said property prices have increased in the county by up to 80% since 2013.

She said that holiday home owners could face large increases as purchase prices have risen by as much as 300% in some areas, such as Miltown Malbay.

Ms Gallery said that home owners in these villages will also face rising tax costs.

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