Sir, – Regarding the proposed property tax (December 22nd), what the panel of experts should first ask itself is where the funds raised will be applied.
The answer is local authority services, such as libraries, swimming pools, roads, services for the elderly, water, drainage, sewers, footpaths etc. So, the next most obvious question is to ask who uses these services? Given that the answer is not just homeowners then the panel should ask why is there a need for a new tax based upon property ownership?
Funds for local authority services should be raised through a community charge based upon income and the ability to pay. Not only would this spread the tax burden more widely and make it more equitable, but it would also negate the need for costly and inefficient Victorian-style household valuations.
Legislation could easily be drafted to allow the Revenue Commissioners to share tax data with local authorities which would allow each adult to be billed individually. Why on earth when we no longer live in the reign of Victoria would we want to implement a 19th-century paternalistic property tax such as that which the government now wishes to foist upon us? – Yours, etc,
Sir, – A simple discount of 10 per cent per year for recent purchasers of their family home should apply to this tax now proposed for 2013. Simply described, those who bought last year would receive a 90 per cent discount; those who bought two years ago should receive an 80 per cent discount, etc, with a discount of 10 per cent for those who bought nine years ago.
By applying this simple formula, the families who paid high stamp duties recently will be relieved, proportionate to their purchase year. Over the years, as the cost of their home is easier to manage, they will pay increasing amounts, up to the full chargeable amount 10 years after their purchase.
For those of us who bought our homes over 10 years ago, the full chargeable amount will be payable from the start, given the relatively low levels of stamp duty paid at the time of purchase. As the majority of home owners fall into this category, this proposed discount will not cost the State a meaningful amount, while providing a valuable relief to recent purchasers.
Dwellings purchased in the past 10 years for a use other than as a primary residence should not qualify for any such discount, as they could be sold without displacing a family from their home, if the owner cannot afford the property tax. – Yours, etc,