Landlords pass household tax onto tenants

Date:

The association representing Irish Landlords have urged their members to pass on the new Household Tax and the Second Homes Tax to their tenants (see statement below). This will amount to an increase of 25 euro per month. No doubt this is part of the "sharing the burden" that the government go on about so much. It gives the lie of course to the government claim that the less well off will be exempt from the household tax.

The government looks increasingly rattled by the level of resistance. Today they are talking of fast-tracking the move to a more graded for of household tax with larger properties getting charged more. However there is no talk of reducing the 100 euro charge for the smaller or less valuable  properties. In fact the plan is still clearly to screw as much money out of people as possible. The 2009 Commission on Taxation proposed such a scheme. Under the commission’s proposed scheme a charge of €188 would be paid on houses valued at up to €150,000; €563 on houses between €150,000 and €300,000; €938 on houses up to €450,000; €1,313 on houses valued at up to €600,000; €1,699 on houses up to €750,000; €2,188 on houses valued at up to €1 million; €3,125 on houses up to €1.5 million and 0.25 per cent of the valuation on houses over that.

Whatever scheme the government comes up with it is clear what their intentions are. It is also clear now that there is growing momentum behind the campaign against the tax, with many "personalities" now backing the campaign and huge reaction in texts and emails every time a radio programme touches on the subject. 

In the coming months the campaign will be organising further events throughout the country, getting communities organised, public meetings, protests etc. if you wish to get involved contact the campaign through the website www.nohouseholdtax.org

IPOA statement

Tenants to be levied with Household Charge

Landlords in the private rental sector will be levying the Household Charge on their tenants.  This charge is for services being provided to the tenant and therefore, they will be required to pay on the basis of the “user pays” principle.  This is not a rent increase.  The IPOA are aware that most landlords absorbed the NPPR charge and did not pass it on to their tenants, but in the current financial climate, they can no longer afford to do so.   The property owner will be liable to pay the Household Charge on their own home where the services are provided for themselves.  

The advice to landlords is to write to their tenants and outline that the service charge of €25 will be levied on a monthly basis, which will bring in €300, the amount being charged by the NPPR and the Household Charge for the services provided to the tenant.  Tenants will also have the choice of paying it in full up front if they so choose.  

This charge is expected to be increased and water charges are also expected to be introduced shortly.  The user pays and the legislation should be brought in on that basis.  Property owners should not be expected to collect this charge, it is unfair and unacceptable. 

Tenants should be able to apply for waivers to the Local Authority, where there are difficulties like in other jurisdictions.  Unfortunately, as the Local Government (Household Charge) Act 2011 stands, tenants in the private rental sector will have to pay while Local Authority tenants will be exempt.

Stephen Faughnan, Chairman of the IPOA outlined “It is unfortunate that we are forced to pass on these charges, but with the huge burden of levies, taxation, compliance etc. foisted on landlords in recent times, we have no pot of gold to absorb any more”

 

Irish Property Owners Association
Ashtown Business Centre,
Navan Road.
Dublin 15.