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Analysis of recent property price developments and implications for Local Property Tax liabilities and revenue yield

Analysis of recent property price developments and implications for Local Property Tax... Abstract The introduction of the Local Property Tax (LPT) in 2013 marked a significant reform to tax policy in Ireland. Initial liabilities for LPT were determined by self-assessment into bands of property values as of May 2013, and the first revaluation was initially scheduled for November 2016. Reflecting the significant residential property price growth which has occurred since the initial valuation date, this paper estimates the implications for LPT liabilities of a hypothetical revaluation at May 2015 property prices. Drawing on a range of data sources, the authors use a transition matrix approach to illustrate the likely changes in LPT valuation bands and liabilities for residential properties. Revaluation is estimated to significantly increase tax liabilities for some taxpayers, with properties in higher valuation bands in May 2013 incurring larger increases in liability. The analysis also indicates substantial regional variation in band changes, with the largest band movements mainly occurring in Dublin. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Administration de Gruyter

Analysis of recent property price developments and implications for Local Property Tax liabilities and revenue yield

Administration , Volume 64 (1) – May 1, 2016

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Publisher
de Gruyter
Copyright
Copyright © 2016 by the
ISSN
2449-9471
eISSN
2449-9471
DOI
10.1515/admin-2016-0010
Publisher site
See Article on Publisher Site

Abstract

Abstract The introduction of the Local Property Tax (LPT) in 2013 marked a significant reform to tax policy in Ireland. Initial liabilities for LPT were determined by self-assessment into bands of property values as of May 2013, and the first revaluation was initially scheduled for November 2016. Reflecting the significant residential property price growth which has occurred since the initial valuation date, this paper estimates the implications for LPT liabilities of a hypothetical revaluation at May 2015 property prices. Drawing on a range of data sources, the authors use a transition matrix approach to illustrate the likely changes in LPT valuation bands and liabilities for residential properties. Revaluation is estimated to significantly increase tax liabilities for some taxpayers, with properties in higher valuation bands in May 2013 incurring larger increases in liability. The analysis also indicates substantial regional variation in band changes, with the largest band movements mainly occurring in Dublin.

Journal

Administrationde Gruyter

Published: May 1, 2016

References