Sir, – Perhaps some of the conceptual and practical difficulties associated with the planned introduction of a property tax could be alleviated by adopting aspects of the French model. Here, property tax comes in two forms: a taxe d’habitation payable by a property’s resident, and a taxe foncière payable by a property’s owner (frequently, of course, one and the same person).
In Ireland, a “local service charge” could be levied to collect funds for local authorities to provide essential services. A “property tax” (in essence, a form of wealth tax) could be levied separately to provide a dependable income stream for central government.
A local service charge – with exemptions for low income groups – would ensure that all users of services would contribute towards their provision, and would increase democratic accountability at the local level. A graded property tax would provide necessary revenue, act as an incentive towards efficient use of property, and perhaps help to curb future asset price bubbles. – Yours, etc,