Homeowners may see their purse strings get even tighter this year with the possible introduction of a new Property Tax or a Land / Site Value Tax for all.
While such a tax was not introduced in the last budget it was indicated that a Property Tax or a Site / Land Value Tax is something that the Government is looking at introducing and which has also been mentioned in the Commission for Taxation, The Programme for Government and in the EU IMF Bailout. All reports recommend moving away from our reliance on transaction taxes and to introduce some form of a Property Tax that would provide a more stable stream of revenue.
A Property Tax would take into account the size of your home whereas a Land / Site Value Tax only looks at the parcel of land that you are on and taxes it accordingly. Either way if you live in an urban area close to amenities and services or in a rural area with a nice plot of land the new tax would have a sizable financial impact.
While some agree with the introduction of more sustainable types of tax for others the introduction is too soon and many more are angered that they would have to pay the tax regardless of the amount of Stamp Duty they paid in the past.
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