Should Ireland's Local Property Tax (LPT) have an energy component?
As announced in the Irish Budget 2013, an annual self-assessed Local Property Tax (LPT) charged on the market value of all residential properties in the State will come into effect from 1st July 2013. It will be administered by Revenue and a half year charge will apply for 2013.
The Chairman of the Revenue Commissioners, today announced details of the administration of the LPT in advance of Revenue beginning to issue personalised letters, Local Property Tax return forms and Local Property Tax booklets to approximately 1,660,000 properties from next Monday (11th March 2013).
But should the LPT be adjusted based on the energy rating of a home? The Building Energy Rating (BER) of a home takes account of the efficiency of a building in consuming energy. As the LPT is designed to fund Local Authorities, and Local Authorities have a remit to reduce Carbon Emissions (and hence energy consumption) and promote sustainable living, would it be worth considering a reduction in LPT for homes with better BERs?
This would provide an added incentive to property owners to upgrade properties and make a huge difference in reducing greenhouse gas emissions. As the typical BER rating is a D, anyone with a C could get a 5% reduction, B's a 10% reduction and A's a 20% reduction, to recompense for how difficult it is for a building to gain an A rating.
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