The Local Government (Household Charge) Act 2011 and the Local Government (Household Charge) Regulations 2012 provide the legislative basis for the household charge.
The Act places the household charge under the care and management of the local authorities, and application in particular circumstances is a matter for the relevant local authority. Interpretation of the legislation is a matter for legal advice in individual cases and ultimately a matter for the Courts.
Under the legislation, an owner of a residential property on the liability date of 1 January 2012 is liable to pay the household charge by 31 March 2012, unless otherwise exempted or entitled to claim a waiver.
The Local Government (Household Charge) Act 2011 provides for a number of exemptions and waivers from payment of the household charge.
The exemptions from payment of the household charge are—
Residential properties that are part of the trading stock of a business and have not been sold or been the source of any income since construction,
Residential property owned by a Minister of the Government, a housing authority or the Health Service Executive,
Voluntary and co-operative housing,
Residential property subject to commercial rates and wholly used as a dwelling,
Residential property owned by certain charities or discretionary trusts, and
Residential property which an owner has vacated due to long-term mental or physical infirmity (e.g. elderly person that has moved into a nursing home).
The waivers which apply concern—
Owners of residential property entitled to mortgage interest supplement, and
Owners of houses in certain unfinished housing estates.
The charge applies to residential property situated in the State. There are no specific exemptions or waivers in the legislation in respect of residential property situated on off-shore islands.
I have established an Inter-Departmental Group on Property Tax to consider the structures and modalities for an equitable valuation based property tax. The Group will complete its work and make recommendations to me shortly. Following consideration of the Group's recommendations, I will bring proposals to Government on the full property tax as soon as possible. It will then be a matter for the Government to decide on the structure and modalities of the full property tax.