Dublin local authorities stand to lose in the region of €30 million by 2019 in Local Property Tax foregone on new homes according to figures compiled by Dublin City Council.
The rate of property tax paid by homeowners is based on the value of the property in May 2013. Houses and apartments bought from a builder since 2013 are exempt from property tax. The exemption was introduced when the tax came into effect in July 2013 and was due to last until October 2016.
This extension was also applied to the exemption on homes sold by builders after the 2013 valuation date, giving new home owners an extra three Local Property Tax-free years.
Figures compiled by the city council’s finance department show the council has already lost an estimated €5.6 million in potential property tax revenues on exempt new homes.
At the standard Local Property Tax rate homeowners would owe the council an average of €405 each, the council applies a 15% discount, resulting in an average annual charge of €344.25. Cumulatively that would amount to €5,594,063 foregone to the city council alone.