Owners of new homes built since 2013 will have to pay property tax from next year as part of a new Economic Recovery Plan approved by the Cabinet today.
The new plan will lay out a road map for the economy as it emerges from the impact of Covid-19.
Up until now any person who purchased a new build property or self built since 2013 qualified for an exemption from LPT once they occupy the property as their sole or main residence. This exemption remains until the next valuation date, 1st November 2021.
It is understood Minister for Finance Paschal Donohoe brought a memo to cabinet this morning seeking to address the issue along the lines of commitments made in the Programme for Government.
That committed the government to bring forward legislation for the Local Property Tax (LPT) “on the basis of fairness and to ensure that most homeowners face no increase”. It also committed that the Government would “bring new homes, which are currently exempt from the LPT, into the taxation system”.
It further committed to ensuring that money collected locally will be retained in the county area.
“This will be done on the basis that those counties with a lower LPT base are adjusted via an annual national equalisation fund paid from the Exchequer, as is currently the case," the memo said.
According to RTÉ News, one of the other changes will see about a third of people already paying property tax having their bill increased by around €100 per year.
It is estimated that around 3% of homeowners will see a bigger hike while around 60% of property owners will see no increase.
