Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Amendment No. 96 relates to the valuation date for local property tax in the 2012 Act. As the Minister will be aware, owners have certainty for the next two calendar years as to the amount of LPT that they will pay. For 2015 and 2016, the amount they will pay will be based on the valuation on the valuation date of 1 May 2013, but there is to be a new valuation date of 1 November 2016.

It must be borne in mind that since the May 2013 valuation date, property prices, especially in Dublin, have increased by in the region of 40%. At this stage, many are looking at a spike of two bands in the valuation of their property. For instance, the property of somebody currently in band 3, where the property has a valuation of between €150,000 and €200,000 and the person is paying €315, could jump quite easily to band 5, where properties are valued at €250,000 to €300,000, which would result in an LPT liability of €495, a jump of €180, which is more than anyone will pay in respect of water charges. I refer merely to the additional LPT.

Many of the Minister's backbenchers, especially those based in Dublin, have expressed concern on this issue. I acknowledge it is two years away. There is certainty for 2015 and 2016 as to what those liable will pay, but this is coming down the track quite quickly. Based on the pattern of property price increases, many face a hefty hike in their property tax bill for 2017.