Oireachtas Joint and Select Committees
Tuesday, 16 November 2021
Select Committee on Finance, Public Expenditure and Reform, and Taoiseach
Finance Bill 2021: Committee Stage
It is important to note, however, that these estimates are based on the current local property tax register of properties and, therefore, much of the underlying data relate back to 2013. That means it is likely the position will change once the 2022 returns are filed because revaluation updates and extensions to the register will all provide new valuations data.
It must be noted that a charge levied on second and subsequent homes would need to be levied at high rates in order to generate significant income to replace the revenue from the local property tax. However, it has to be borne in mind that in all likelihood landlords faced with the prospect of such increased charges would pass on the resulting costs to tenants. This would aggravate an already difficult housing situation, especially in large urban centres. As the committee will be aware, we have seen recent market commentary from Daft.iethat rents have risen by an average of 2.6% in the third quarter of 2021 nationwide, and that across the country as a whole, market rents are now nearly 7% higher than a year ago.
The local property tax is an effective and important stable and sustainable source of revenue for the local government sector. All property owners who benefit from essential local services help to fund those services through the local property tax.
For the reasons I outlined, I do not propose to accept this amendment.