Numbers paying property tax falls 10%, according to report

87,000 people have property tax deducted from welfare payments, pensions and wages

Local Property Tax forms sent out by the  Revenue.  Photograph: Bryan O’Brien/The Irish Times
Local Property Tax forms sent out by the Revenue. Photograph: Bryan O’Brien/The Irish Times

There has been a decrease of 10 per cent in the level of compliance for the payment of Local Property Tax (LPT).

There are 1.7 million households in Ireland expected to pay the LPT, in previous years the level of compliance has been 97 per cent, but this year that has slipped back to 87 per cent according to figures released to RTÉ News under the Freedom of Information Act.

The tax was introduced in 2013 and is based on the value of one’s home. It has an average cost of about € 280 a year, but costs significantly more to those living in higher-priced properties.

So far this year 87,000 people have had the LPT deducted from welfare payments, pensions and wages, an increase of over 30,000 on last year.

READ MORE

In 2015 there were 56,200 such deductions.

Brian Keegan, Director of Taxation at Chartered Accountants Ireland told RTÉ's Morning Ireland that the public's unhappiness with bin charges and water charges could be a reason for the drop in the level of compliance.

He said Revenue had stepped-up its efforts to collect the money as it will not want the public to think there is any “wiggle room” on the topic.

Revenue has the authority to deduct the LPT from social welfare payments, pensions, wages and the bank accounts of non-compliant property owners.

Where Revenue is unable to secure the funds, it refers the matter to the Sheriff who can seize goods to the value of the tax owed.

The figures show that 3,055 cases were referred to the Sheriff since January 1st, 2015.