Senator Mark Daly: says homeowners cannot afford unfair property taxes, Wrong Plan at the Wrong Time

Fianna Fáil Senator Mark Daly has accused Fine Gael and Labour of attempting to hide behind false claims that they are being forced into introducing property taxes.

The Kerry Senator has voiced his strong opposition to the Government’s property tax at a time when so many in people across the country are already in mortgage difficulty and negative equity.
Valuation Band Rate Excess over €1 million Property Valued @ Tax Due
–           100,000 0.18%                   50,000                 90
100,000         150,000 0.18%                 125,000 225
150,000         200,000 0.18%                 175,000 315
200,000         250,000 0.18%                 225,000 405
250,000         300,000 0.18%                 275,000 495
300,000         350,000 0.18%                 325,000 585
350,000         400,000 0.18%                 375,000 675
400,000         450,000 0.18%                 425,000 765
450,000         500,000 0.18%                 475,000 855
500,000         550,000 0.18%                 525,000 945
550,000         600,000 0.18%                 575,000 1035
600,000         650,000 0.18%                 625,000 1125
650,000         700,000 0.18%                 675,000 1215
700,000         750,000 0.18%                 725,000 1305
750,000         800,000 0.18%                 775,000 1395
800,000         850,000 0.18%                 825,000 1485
850,000         900,000 0.18%                 875,000 1575
900,000         950,000 0.18%                 925,000 1665
950,000       1,000,000 0.18%                 975,000 1755
1,000,000       1,050,000 0.18% 0.25%               1,025,000             1,863
1,050,000       1,100,000 0.18% 0.25%               1,075,000             1,988
1,100,000       1,150,000 0.18% 0.25%               1,125,000             2,113
1,150,000       1,200,000 0.18% 0.25%               1,175,000             2,238
1,200,000       1,250,000 0.18% 0.25%               1,225,000             2,363
1,250,000       1,300,000 0.18% 0.25%               1,275,000             2,488
1,300,000       1,350,000 0.18% 0.25%               1,325,000             2,613
1,350,000       1,400,000 0.18% 0.25%               1,375,000             2,738
1,400,000       1,450,000 0.18% 0.25%               1,425,000             2,863
1,450,000       1,500,000 0.18% 0.25%               1,475,000             2,988
1,500,000       1,550,000 0.18% 0.25%               1,525,000             3,113
1,550,000       1,600,000 0.18% 0.25%               1,575,000             3,238
1,600,000       1,650,000 0.18% 0.25%               1,625,000             3,363
1,650,000       1,700,000 0.18% 0.25%               1,675,000             3,488
1,700,000       1,750,000 0.18% 0.25%               1,725,000             3,613
1,750,000       1,800,000 0.18% 0.25%               1,775,000             3,738

with limited exemptions which largely correspond with Household Charge exemptions and Properties bought by first-time buyers in 2013 and for any new or previously unoccupied homes bought in that period will be exempt from the new Local Property Tax up to the end of 2016

The government should tackle the mortgage crisis before they introduced a property tax
The stats for those in mortgage difficulties are growing daily

· Approx. 128,000 mortgages are in arrears – 128,416 (16.8%)
· 761, 533 mortgages (17%) in Ireland which means are in arrears already
· 400,000 tracker mortgages in Ireland (over half the residential mortgages issued in Ireland)
· 80% of tracker mortgages taken out between 2004 and 2008
· Total value of tracker mortgages is €51 billion
· Trackers cost borrowers 1% above ECB rates – 2% interest a year

 

Senator Daly said: “The reality is that many families simply cannot afford more taxes on a home that they are already struggling to pay for. The latest figures show that more than a quarter of homeowners are in mortgage difficulty and I have spoken to many people locally who can’t afford their basic household bills as it is, let alone pay extra taxes of hundreds a euro a year on their home.

“Let’s be completely clear about this – no one is forcing Fine Gael and Labour to hit homeowners with property taxes. Fianna Fáil met with Troika officials last month and they could not have been clearer that property taxes are not necessary if we reach our overall savings targets in the Budget. It is completely up to the Government to chose what policies to implement to meet these targets.

“The Government needs to take a step back instead of blindly continuing down this road without considering the massive impact on homeowners at a time of a deepening mortgage crisis. A property tax based on market value is highly discriminatory and makes no consideration whatsoever of ability to pay. A homeowner whose house is worth €200,001 but who is in negative equity, struggling to meet mortgage repayments and has already paid stamp duty. Will they be forced to pay out an extra €405 a year in property taxes?

“The reality is that this is the wrong tax at the wrong time and it poses unnecessary hardship on homeowners who already feel they are being squeezed from every angle. Fianna Fáil alternative budget proves that property taxes are not necessary to meet the overall adjustment of €3.5 billion next year. Instead of property taxes, we propose an increase in the Universal Social Charge for people earning over €100,000 a year, a direct levy on earnings in the tobacco industry that would raise €100 million and an increase in Capital Gains Tax and Capital Acquisition Tax. This is a much fairer way towards recovery.”

Senator Daly concluded, “The Government needs to tackle the escalating mortgage crisis before slapping additional hefty bills on hard-pressed families.”

Note to Editor: Senator Daly was an Auctioneer from 1996 to 2007
He holds a Diploma in Property Auctioneering, Valuations and Estate Agency from Dublin Institute of Technology Bolton Street and a Batchelors of Science. in Estate Management from Greenwich University, London

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