Mitchell O’Connor urges Minister to review LPT rates in light of recovering property market

Fine Gael TD for Dún Laoghaire, Mary Mitchell O’Connor, has said that a review of local property tax rates is needed to address the concerns of homeowners living in areas where house prices have increased.

“House prices in my own constituency of Dún Laoghaire have increased in recent months and home owners in the area may be faced with a rise in Local Property Tax when the scheduled review takes place at the end of 2016. I have contacted the Minister for Finance, Michael Noonan to express my concerns about the impact that such an increase would have.

“In the period since property value assessments were completed for Revenue in 2013, house prices in Dún Laoghaire have risen by more than 42 per cent. The tax was set at €675 for a property worth between €350,000 and €400,000 but such properties could be worth well over €500,000 by late 2016.

“The local property tax has been designed with three-year reviews to ensure predictability, and to prevent shocks for taxpayers so I am confident that any changes to LPT would be announced well ahead of the next review.

“There has been a huge improvement in the economy over recent months and this is to be very much welcomed. However, I am concerned about the financial impact a rise in property tax would have on people in Dún Laoghaire and other urban areas.
“Dún Laoghaire – Rathdown County Council have voted to reduce the Local Property Tax by 15%. This is a very welcome but once-off move.

“Minister Noonan has said that the central national rate for Local Property Tax will not vary for the lifetime of this Government. This is also to be welcomed but I am asking the Minister to look beyond 2016 and to provide some reassurance for homeowners.”