Ombudsman investigating ‘extortionate’ NPPR demand

The Office of the Ombudsman is investigating a complaint from a Galway City property owner – who has lived in the US for the past 16 years – after receiving a so-called ‘second homes tax’ bill for more than €4,200 from the City Council.

Sarah Manning has branded the Council “gangsters” and accused them of extortion for allowing her tax liability on the house build up over five years, without informing her.

The ex-pat registered her property in Knocknacarra as a rental property with the Council in 2002, but only learned of the existence of the annual €200 Non Principal Private Residence (NPPR) tax when the local authority wrote to her last week, informing her of the NPPR liabilities and that a figure of €4,220 is due.

That figure will increase to €7,230 if unpaid by the end of this month (the initial amount due would be €1,000 in total, but increases due to penalties). The charge was in place from 2009 to 2013 but has been replaced by the Local Property tax.

Despite registering her details with the Council in 2002, paying tax on rental income and paying the Local Property Tax, she was never made aware of the NPPR levy.

“Galway City Council were fully aware of my whereabouts for the last 11 years, and they allowed the delinquency to amass to over 400% more than the original charge, and opted to notify me a mere two weeks before it is increased to being over 700% beyond that original charge, and threaten that if I don’t come up with the money within two weeks, it will be a lien recorded against my property until paid in full.

“Who, other than gangsters does this? This is extortion, pure and simple. Is this all some nefarious trap for the unwary to raise more money for local councils and the Irish Government by those misfortunate enough like myself to be living overseas from 2009-14 who were totally unaware that this tax was imposed and allowed go into delinquency status, accumulating interest at the rate of 10% per month, and thus slowly eating away at the equity in my property there?” Ms Manning wrote to the Ombudsman.

The Council has pointed out that since the NPPR tax is a self-assessment charge, no invoices or notices are issued.

For more, read this week’s Connacht Tribune.