Non-Principal Private Residence Charge Yield

Wednesday, 2 October 2013

Questions (204)

Michael McGrath

Question:

204. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the yield that would be achieved from retaining the non-principal private residence tax in 2014 at €200 for properties valued at up to €200,000 and €300 for properties valued in excess of €200,000; and if he will make a statement on the matter. [41365/13]

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Written answers

Minister for the Environment, Community and Local Government

The Local Government (Charges) Act 2009 broadened the revenue base of local authorities by introducing a charge on non-principal private residences. The self-assessed charge is set at €200 per annum and liability for it falls, in the main, on owners of rental, holiday and vacant properties. The Non Principal Private Residence Charge is not related to the value of a property. As such, I am not aware of the number of properties which are valued in excess of €200,000 and which are liable for the charge. I am therefore unable to estimate the financial benefit of increasing the Charge for properties valued above a €200,000 threshold.

I understand that the Non Principal Private Residence Charge has raised €75.7m in respect of 2012 liabilities to date, a portion of which has been collected in 2013. 2013 will be the final year of the operation of the Charge. The Local Property Tax has been introduced on a half year basis this year and accordingly 50% of the Tax is payable in 2013. From 2014, the Tax will operate on a full year basis.