Phil Hogan (Carlow-Kilkenny, Fine Gael)

The EU-IMF programme of financial support commits the Government to introduce a property tax from 2012. The programme reflects the need, in the context of the State's overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for them. A property tax would take some time to introduce, in the light of the complex issues involved, including the need for a comprehensive property valuation system. Accordingly, to meet the requirement in the EU-IMF programme, the Government has decided to introduce a flat-rate household charge as an interim measure in 2012. Proposals for a full property tax will be considered by the Government in due course. The legislation to underpin the household charge will contain the precise details of the charge. It will be published and brought before the Oireachtas before the end of the year. Similar to the charge on non-principal private residences, it is intended that the household charge will be administered on a self-assessment basis. It will be a matter for owners of residential property to register and pay the charge by the due date. In the event of non-payment, penalties will apply. Unpaid household charges will remain as a charge against the property concerned.

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