The Government decided in July that the Revenue Commissioners should administer the forthcoming property tax. I am advised by the Revenue Commissioners that they are actively planning for the implementation of the tax. This includes preparing a specification for the operation of the tax, assessing the impact on Revenue systems of its implementation, assessing the IT and other infrastructure requirements, identifying the work involved in establishing a property and property owners register, etc. Work is also underway to prepare the necessary legislation. Revenue is engaging with a wide range of Government Departments and agencies and other service providers in planning the implementation of the tax.
Other than the decisions to introduce the tax and that it will be administered by Revenue, no further policy decisions have been finalised by the Government. However, potential behavioural impacts will be analysed, as is customary when Budget changes are being considered.
I understand that the ESRI provided assistance to the Inter-Departmental Expert Group on Property Tax, chaired by Dr. Don Thornhill. The Group's report has been presented to the Minister for the Environment, Community and Local Government and will be considered by the Government in due course.
In many countries an annual recurring property tax co-exists with a tax on property transactions, such as a Stamp Duty. Statistical information derived from the Stamp Duty system was fundamental to the establishment of the new property price register.
The Non-principal Private Residence (NPPR) charge is a matter for the Minister for the Environment, Community and Local Government. However, the interrelationship of that charge with the property tax will be an issue for consideration in the context of Budget 2013.
The ability of individuals to pay the tax, and other related factors, will be taken into account as part of the Government's deliberations. My officials will analyse the potential impact of the proposed tax, and will examine submissions in this regard, including pre-Budget submissions.
