Michael Lowry (Tipperary North, Independent) | Oireachtas source

There is a reluctant but growing acceptance that a property tax will become a reality. The local property tax in its current form has sparked widespread concern and considerable anger from those who simply cannot take any more pain and who are now living in fear. The local property tax compounds the harsh effects of this budget on families, the elderly and those on lower incomes. The persistent message from my Tipperary constituents is simple: their income has been cut to the bone and any further taxes inflicted will devastate household finances. The budget has created a real fear that Revenue will come down heavily on vulnerable families for the local property tax. These families are understandably frightened at the wide-ranging powers of attachment vested in the Revenue Commissioners. Essentially, the Bill will allow Revenue to take money at source from a social welfare recipient, a farm payment, a wage packet or a bank account. These strong-arm collection tactics will lead to families sacrificing other essential needs to ensure the tax is paid. This may mean no heating will be turned on, no food will be on the table, bills will fall into arrears or the mortgage will not be paid. The deferral system built into the Bill is illogical and will serve only to saddle strained individuals with a mammoth bill later. In fact, it punishes individuals who cannot pay immediately by slapping a 4% interest charge per annum.

Many families have slogged and saved for many years to put a roof over their heads. They are now being crucified by these measures. The narrowness of the exemptions in the Bill will cause severe hardship and pain for home owners. A system based solely on the value of the property and which takes no other considerations into account is grossly unfair and inequitable. Why has no regard been given to other factors such as negative equity, stamp duty paid or an individual's ability to pay? There is no relief for those who purchased large homes in recent years but who now have limited incomes. A large home does not necessarily equate to wealth. Many such people have seen their incomes decimated and are now struggling with a large house they can no longer afford to maintain. Many of these people invested their savings in a banking system that collapsed. Why is the income and wealth of home owners not taken into account? The Government has failed to protect those crippled financially by negative equity or mortgage arrears. It has simply ignored these present-day realities in our society and intends to impose a blanket charge on everyone, irrespective of ability to pay or the impact it will have on those on lower incomes.

What consideration did the Government give to a site valuation tax? Why was a decision made to pursue a tax based on the value of the property? How are home owners with no relevant experience to determine the market value of their home? What support will be given to assist home owners with the valuation assessment? Will a commitment be given that no adverse reaction will ensue if such a home owner erroneously undervalues his house? Who will be the final arbitrator where there is a dispute over the value of a property? If this power is afforded to the Revenue Commissioners, has due reflection been given to the fact that the Revenue has no experience of valuing homes or the property market in general? Where financial resources are limited or non-existent, will the Revenue Commissioners take precedence in collecting the charge over other creditors such as the banks? We are certain to witness many situations in which banks and mortgage lenders will be in competition with the Revenue in a mad scramble to get the first squeeze on the last euro from the property owner.

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