Galway Accountants GBS & Co review Local Property Tax as outlined in the Budget on 5th December 2012

Galway Accountants GBS & Co Review the Local Property Tax as per the 5th Dec 2012 Budget
The Household Charge will be abolished from 1 January 2013 and outstanding charges will be collected through the LPT system.  Where the property is valued at €1 million or lower, the tax will be based on the mid-point of the relevant band at a rate of 0.18%. For properties valued over €1 million the tax will be charged at 0.18% on the first €1 million
of value and 0.25% on any balance in excess of €1 million, with no banding applied.  Using an example of a property in the €150,000 – €200,000 threshold the half year charge in 2013 will be €157.i.e. (€175000 * 0.18%)/2
Payment can be made by credit or debit card, cash,direct debit or by voluntary deduction at source from Irish salary or wages, occupational pensions or certain payments from the Department of Social Protection and the Department of Agriculture, Food and the Marine.
If the LPT is not paid, a charge will attach to the property which must be paid if the property is sold or the ownership transferred.  The Revenue Commissioners will send out an
explanatory booklet on the operation of LPT, including valuation procedures, in March 2013.
Valuation will be by self-assessment in 2013 and those valuations will be used until the end of 2016.

Exemptions
The exemptions from the LPT will be the same as those applied to the Household Charge, with the following New and previously unoccupied homes purchased between 1 January 2013 and 31 December 2016 will be exempt up to the end of 2016.  Second-hand property purchased by a first time buyer between 1 January 2013 and 31 December 2013 will be
exempt until the end of 2016.  Voluntary deferrals People with gross incomes of up to €15,000 (single) and €25,000 (couples) can defer the full LPT until their financial  circumstances improve or the property is sold.  Certain deferral arrangements are also available for people at higher levels of income, and for people whose income is less than a certain percentage of their annual mortgage interest.

Any queries on this issue please contact Ciaran Guilfoyle of GBS & Co –  www.easypayroll.ie