The Local Government (Household Charge) Act 2011 and the Local Government (Household Charge) Regulations provide the legislative basis for the household charge. Interpretation of the legislation is a matter for legal advice in individual cases and ultimately a matter for the Courts. Under the Act, an owner of a residential property on the liability date of 1 January 2012 is liable to pay the household charge, unless otherwise exempted or entitled to claim a waiver. The household charge is on a self-assessment basis and it is a matter for an owner of a residential property on the liability date to determine if he/she has a liability and, if so, to declare that liability and pay the household charge.
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.
I have established an independently chaired Inter-Departmental expert Group 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.
In relation to water pricing, Irish Water, which will assume the operation of water services from local authorities, will be required to have a range of options in place to assist householders who have difficulties in paying their bills. For example, a wide range of flexible payment options are available for the other utility services and it is expected that these will be replicated for water services. The Regulator will address affordability issues, including in respect of persons with medical conditions, in consultation with my Department and the Department of Social Protection in the context of developing a water pricing framework.