The Local Government (Charges) Act 2009 provides the details of the new 200 euro per property charge. The payment is to be made to each local authority within whose boundaries rental properties and holiday homes lie.
Payment must be made by liable house and apartment owners to their local authority before the end of September 2009.
If payment is not received by the local authority by that date, they will impose a levy of 20 euro per month, starting from the first of November.
In theory, if a property owner deemed liable for the new charge fails to pay it, the local authority may pursue them through the court to obtain payment of both the original property charge and any fines accruing.
People living in their main residence are not liable for the property charge, nor are they liable if they receive rental income for one room in their main residence. However if a property owner rents out the entire house, then they will be liable for the entire charge.
Other exemptions from the new act apply to rooms in a main residence, or within two kilometers of a main residence which is occupied free of rent by a relative of the property owner, i.e. a granny flat.
The new property charge only covers second properties located in Ireland and overseas properties are exempt.
If an unmarried couple, each of whom owns a house, live together in one main residence, then the local authority will expect the property charge to be paid on the second house.
The liability date for the new charge is July 31st for the 2009 tax year. Owners of a second home after that date are liable to pay the new charge.
Local authorities are not obliged to inform property owners of any potential liability under the new charge and it is up to each individual property owner to treat the charge as a self assessed tax.
Property owners can pay the charge online at www.nppr.ie or through their local authority offices.
If a new property tax is introduced in the next budget, the Commission on Taxation report recommends that the 200 euro property charge be dropped to avoid double taxation.
This article is only intended as a general guide to the new Property Charge in Ireland. You should consult the relevant websites for more information and the exact terms and conditions involved.
