Homeowners in County Galway could be facing Local Property Tax bills of more than three-and-a-half times their existing rates when a revaluation process kicks in during autumn 2019.
Significant increases in property values since the LPT system was introduced – despite many homeowners still being in negative equity – mean many properties may be undervalued.
According to figures from property website Daft.ie, the average price of a house in the county in 2013 was just €80,000. That translates to a rate of €90 for a full year.
Based on Daft.ie’s latest report, asking prices in the county are averaging around €170,000, which would result in a LPT charge of €315 – a 250% increase, or three-and-a-half times the rate.
The LPT system was initially to be revised in November of this year, but Finance Minister Michael Noonan decided in the last Budget to postpone it for three years.
One local auctioneer said: “We have seen significant increases in residential property values since the introduction of the Local Property Tax.
“The first payment due in 2013 was for a half-year, which was affordable for many people. Then their payment doubled for 2014, so they sat up and took notice.
“If you take a good quality house in a good location a few years ago for under the €100,000 mark, that would have been Band 1 and a full year rate of €90.
“Based on the rise in property values in certain county areas – and again, these are areas with good demand – it may now be worth up to €200,000 [Band 3 with a rate of €315 per annum] or slightly higher [Band 4 at €405].”
See full story in this week’s Connacht Tribune
The post Galway householders face Property Tax shock appeared first on Connacht Tribune - Galway City Tribune.