Local Property Tax & Non-Principal Private Residence Charge (NPPR)
There has been a lot of talk and confusion over both local property tax and Non-Principal Private Residence Charge (NPPR) lately both online and on national radio.
An annual Local Property Tax (LPT) charged on all residential properties in the State came into effect in 2013. A half-year payment was due in 2013, with a full-year payment due in 2014. The LPT is collected by the Revenue Commissioners. If you own a residential property in the State you are liable for payment of the tax. (This includes local authorities and social housing organisations).
Non-Principal Private Residence Charge (NPPR)
NPPR is an annual charge applied from 2009 to 2013 in respect of residential property that was not the owner’s only or main residence in those years. This Non-Principal Private Residence charge or NPPR was introduced by the Local Government (Charges) Act 2009 to go towards funding local authority services. In 2012 and 2013, it was payable along with other property taxes, as follows:
- For the year 2012, the household charge was payable on the property, in addition to the NPPR.
- For the year 2013, the Local Property Tax (LPT) was payable in addition to the NPPR.
From 2014 onwards, the NPPR is no longer charged, but outstanding liabilities and payments will still be collected.
Second Home Tax Amnesty
The second-home tax amnesty runs out this weekend on August 31st, 2014. According to the CitizensInformation.ie website, if you have not paid the NPPR up to 31st August, 2014 the following will apply:
Up to 31 August, 2014
If you were due to pay the NPPR in any (or all) of the years 2009 to 2013 and have not paid the charge due, you will have accumulated late fees and penalties. If you were liable for the full period and have not paid anything, you now owe a total of €4,220.
These late fees ceased to accumulate after 1 March, 2014 and the totals due have been frozen for a ‘grace period’, starting on 2 March, 2014 and ending on 31 August, 2014. During this grace period, no new late penalties will apply to existing NPPR liabilities.
After 31 August, 2014
If you do not pay your liabilities in full by 31 August, 2014, or agree settlement terms by that deadline, you will incur additional penalties. If you were liable for the full period, you will owe a total of €7,230 when these penalties are applied. With many people either unaware that they were liable for payments there has been a call for an extension and / or an option to pay by installments. An article in the Independent.ie highlights “an issue around what are known as ‘accidental landlords‘, homeowners who bought properties and then because of difficulties with meeting mortgage repayments decided to let the property and move back home.”