You have to pay attention when the Irish independent reports the government is considering a Property tax.  Enda Kenny fresh from sorting out his own house, set about challenging the government on this suggesting that he was “flying kites” and presenting “straw men” through the media.  A blustery day obviously affecting his choice of words and analogies.

Property Tax Budget Rumours

The rumblings on the property tax were reasonably detailed.  Houses are valued by tax band, with houses under €150,000 charged €225, houses from €150,000 – €300,000 charged €675, houses €300,000 to €450,000 charged a €1,125 and after that roughly at a rate of 0.3%, meaning €3,000 if your house is valued at a million.

This would apply to all houses, private residence/rented, occupied/unoccupied if it follows the recommendations of the Taxation commission report.  It would replace the current NPPR second property tax of €200 a year.

The speculation did not extend to what exemptions might apply, but these might not be extensive.

For the record Taoiseach Brian Cowen in reply to Enda Kenny  said he wouldn’t respond to speculation and it was a matter for the budget.  Enda Kenny clarified that Fine Gael is opposed to such a measure.  Let’s see how this one develops over the next few months.