Sean Fleming
Question:201 Mr. Fleming asked the Minister for Finance the amount of revenue foregone in 1999 under the residential property tax having regard to the increases in house values. [13011/99]
Written Answers. - Residential Property Tax.
Residential property tax was abolished with effect from the valuation date 5 April 1997. The revenue loss from this abolition was estimated at £15 million in a full year.
I am informed by the Revenue Commissioners that, while data is not available which would enable an exact forecast of the residential property tax yield for 1999 to be made, it is estimated that the yield in 1999 would be around £29 million. This estimate takes into account the house price increases which have occurred since April, 1996, the last valuation date for the tax, and the effect of rising incomes over the same period. It also assumes no change to the basic operation of the tax.
I should, however, remind the Deputy that when residential property tax was abolished in 1997, stamp duty rates on houses valued in excess of £150,000 were increased to recoup most of the loss in revenue as a result of the abolition of residential property tax.