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Property Tax and House Prices

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If the mooted property tax is value-based, how can taxpayers value properties in a volatile market in the absence of reliable data? For example, my home was worth about €900,000 at the peak; is worth €650,000 by reference to local asking prices; is worth €360,000 based on a multiple (15x) of local rent levels; and valued at €175,000 based on a pre-boom multiple of five times current average earnings.

Leaving valuations aside, how collectible is a property tax given that over 4% of mortgages are more than 90 days in arrears, many more mortgages are interest-only, thousands more are receiving mortgage interest supplements and over 300,000 households are moving into negative equity having possibly paid substantial stamp duty on their purchases?

Letter published in the Irish Times on 28th June 2010.

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That is part of the reason that a 'property tax' is pointless and instead a well run and less volatile 'site value/land value' tax would be better suited - have a read and let me know what you think: http://www.mortgagebrokers.ie/blog/index.php/2010/07/05/property-tax-is-a-good-thing-but-only-one-type-of-it/

Brian
A house property tax must be introduced and is inevitable.
Your problems with one are transitory and can be hurdled.
A banding system as in NI is probably best.
It should apply to all houses.
Site value based tax is half assed.

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This page contains a single entry by Brian published on June 28, 2010 1:02 PM.

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