Water and Property Charges

Latest update on proposals re Water and Property Taxes

See below clarification on issues surrounding the introduction of charges next Janruary. Please feel free to contact me at either my Clonakilty or Bandon office if you have any further queries or by e mail at jim.daly@oir.ie Bandon 023 8843868 Clonakilty 023 8858770

Property Valuation Tax (PVT)
Consideration was given in the Programme for Government and a commitment given in the Memorandum of Understanding with the EU/ IMF, agreed by the last Government, for a tax on property or site valuation tax.

Until the Dept of Finance decides on the best way to implement this Property Valuation Tax, an interim charge, termed a ‘household charge’ will be put in place. This charge will be a flat fee which will commence from 1st January 2012. The ‘household charge’ will be dropped once the Property Valuation Tax is introduced down the line.

Owing to the current state of the public finances, this charge will be used to fund local services which, to date, have been paid for by the Exchequer such as lighting, street cleaning, fire services, libraries.

The exact rate of the household charge will be determined when the results of the comprehensive departmental spending review are known.

Consideration for exemptions to the tax will be given to those on lower incomes and those who cannot afford to pay.

Details will be brought before the Cabinet in the next few weeks.
Water charges

A system of charging for water was also flagged in the Programme for Government with a commitment being given in the EU/ IMF agreement to commence charging for water by 2013.

There will be no flat fee where water charges are concerned. A generous, FREE allowance will be allocated to each household and a charge will be imposed after that allowance has been exceeded.

Installing water meters will commence sometime next year. Meter installation to every home in the State will take approximately three years to complete. The cost of this will be in the region of €500 million.

This is primarily a conservation measure. Water is a finite and expensive resource which costs €1 billion to treat every year. Allowances will be adequate for washing, cooking and everyday domestic usage. It will not cover things such as filling home swimming pools.

Again, consideration for exemptions to the charge will be given to those on lower incomes and those who cannot afford to pay.