Property Tax on Second Homes – Payments Due by 30 September 2009

A tax on Non Principal Private Residences came into effect in Ireland on 31st July 2009. The 2009 payments are due by 30th September 2009. One month’s grace is allowed–payments made after October 31st will incur a penalty of €20 per month or part month.
The new property charge is aimed at rented property, holiday homes/second homes. Initially it will be set at €200 a year and proceeds will be used to help fund Local Authorities. The charge is the same for all properties, regardless of size, location or value.
The main exemption is for principal private residences. No person can have more than one sole or main residence. If you are renting a home and own another property – you are still liable for the NPPR.

Some Exemptions:
a) Properties are exempt if they are rented out as part of the RAS (rental accommodation scheme) or rented to the HSE , or leased to a housing authority;
b) Where a person partly occupies a dwelling as his or her sole or main residence, and avails of and is entitled to the Revenue Commissioner’s Rent-a- Room Scheme, no liability for the NPPR charge will apply
c) Charities are exempt
d)Properies that are liable for commercial rates will not be laible for the NPPPr charge.
e)There is also an exemption for Newly Constructed but Unsold Buildings – that are vacant and have never been occupied.
The new property charge is to be paid to a body called the NPPR . You will be able to register your properties and pay the charges online at the nppr.ie website by credit or debit card.
Property owners will also be able to register and pay at your local council offices using an NPPR registration form. The payment types accepted wil be credit card, debit card, bank draft, postal order and cheque.
Late Payment : if the NPPR charge is not paid within a month after the last date for payment, a late payment fee of €20 will apply for every month or part of month that the €200 Euro charge remains unpaid.
From 2010 the charge will be due before March 31st every year.

Property Registration:
The onus is on property owners to register any properties that are not their principal residence.
The Local Government Charges Bill 2009 allows for the use of information from the Private Residential Tenancies Board, the Revenue department and ESB to assist in the identification of non principal residences. Properties in the Rental Accommodation Scheme are exempt. There are also limited exemptions where a person is moving house and temporarily owns two houses for a short period.

Further Information: http://www.nppr.ie/