Landlords to be ÔfleecedÕ on the double

Date Published: {J}

BY ENDA CUNNINGHAMLandlords and holiday home owners are set to be ‘fleeced’ by having to fork out for the €200 ‘second home’ levy again in January, Galway West Deputy Padraic McCormack has warned.

The Deputy said that under current legislation for the Non-Principal Private Residence (NPPR) levy – which had to be paid by September 30 – the €200 payment will fall due again in January.

He has called on Environment Minister John Gormley to change the legislation so the payment is due in October of every year.

At the moment, there are believed to be more than 28,000 homes in Galway City and County which are liable for the tax, based on Census 2006 figures, although local authorities have admitted they do not have a definitive figure.

“The Government’s new annual €200 charge on second homes that homeowners had to pay will only last until the end of the year before it has to be renewed again,” said Deputy McCormack.

He explained that the issue emerged at the Oireachtas Environment Committee – of which Deputy McCormack is a member – and said Minister Gormley should allow all those who paid the tax get a full 12 months.

“This is simply a rip-off by Fianna Fáil and the Greens that fleeces taxpayers. “Under Section 3.2 of the Local Government Charges Act, the second home tax had to be paid by last month. However, instead of this payment covering the next 12 months, it will only last until December. At that point, each liable taxpayer will have to pay for the 2010 calendar year

“Most taxpayers were under the impression that the payment in October would last for 12 months. However, it was only for the 2009 calendar year and the payment for 2010 calendar year is due next March at the latest.

“There is no good reason for the payment deadline not to be every October and for those who paid their annual charge last month to get a full year’s worth out of it. The Minister must rescind this section and allow for this to happen,” said Deputy McCormack.

He said the discrepancy was another example of ‘rushed legislation’ by the Government.

“This incident is also another example of rushed legislation being bad legislation. The Local Government Charges Bill was rushed through the Oireachtas with the Government curtailing and guillotining debate. Considering that this rip-off slipped into the legislation unseen, it is clear why Fianna Fáil and the Greens adopted such tactics,” said Deputy McCormack.

As well as their own databases for the crackdown, the Councils also have access to databases operated by the Revenue Commissioners, the ESB and the Private Residential Tenancies Board (PRTB), with whom landlords are legally obliged to register tenancies. However, it is widely acknowledged that all rented properties are not included on the PRTB register.

The levy comes with a late penalty fee of €20 per month for each, or part of each month, for each property.

Figures for the County Council area show there are up to 14,000 properties in the county area liable to be ‘hit’ by the levy, with a further 14,500 rented and empty properties in Galway City.

Recent figures from the City Council showed that the levy had been paid on just over 5,800 properties.

The new tax, introduced in last April’s ‘emergency’ Budget, applies to anyone who owns a residential property that is not their place of residence, although there are a number of exceptions to the law. The new levy income has been welcomed by local authorities in Galway which are desperately attempting to create new revenue streams to shore up finances.