A fifth of homes could face higher property tax - new report

Changes to Local Property Tax have been deferred for one year

The report is said to outline a number of proposed options for dealing with the tax, from cutting the rate to widening the bands.

Almost a fifth of people could see an increase in their Local Property Tax (LPT) under one option in a report on the levy being considered by Cabinet today.

However, it is expected to be decided by Cabinet that any changes to the LPT will be deferred for another year.

The report on the future of the LPT was commissioned by the Department of Finance and is being brought before Ministers today.

The decision to postpone any decision on property tax kicks the politically contentious question past the local elections and also probably past the next general election.

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Sources said, however, that the report for Minister for Finance Paschal Donohoe will identify a number of scenarios on how to deal with the future reform of the tax. All scenarios are said to involve an increase in tax for at least some homeowners.

According to sources, one of these would see 18 per cent of people hit with an increase in their LPT. The report is said to outline a number of proposed options for dealing with the tax, from cutting the rate to widening the bands.

However, the Government is not expected to make any decision other than deferring changes for another year.

Property tax rates have been frozen since 2013 and a decision was made in 2016 to keep them at current levels until November 2019.

The findings of the report are likely to be referred to an Oireachtas committee in an attempt to find an all party solution, although this suggestion will be met with hostility from the Opposition.

Fianna Fáil’s Michael McGrath said that if changes are delayed it would be “a classic example for the government running scared” and “kicking the can down the road”.