Just €163,000 collected in Offaly for second home tax

The new €200 tax on holiday homes or second properties has netted Offaly County Council just €163,000 to date, almost €550,000 less than initial estimates, the latest figures have indicated. Statistics revealed in the Dáil last week for revenue collected in councils nationwide as of September 23, showed that Offaly had collected just €79,000 from the tax, just over 12.5% of the projected income. More recent figures from Offaly County Council, yesterday (Thursday) show that €163,000 has now been collected. According to figures in the latest Census back in 2006, there were 220 holiday homes in Offaly along with 3,330 vacant houses and flats, bringing the projected total revenue to over €710,000. However, it's felt by many that because of the rushed nature of the tax introduction, leaving little time for work to determine the current number of second or holiday homes and, taking into account how out of date the 2006 figures are likely to be now, those kinds of figures are not likely to be realised by the councils this year. Although the closing date has now passed, those liable for the charge have a month-long grace period to pay the tax before incurring penalties of €20 per month from November 1 and this will continue to roll up as long as the charge remains unpaid, meaning for example, someone with two properties who doesn't pay the tax for six months could face a bill of close to €800. Furthermore, both the €200 charge and any accumulated late payment fee will be a charge against the property concerned, something that is likely to lead to difficulties in selling a residential property as the person buying it would become liable for any charges and fees outstanding in respect of the house concerned. Under the workings of the scheme only passed into law in July, The Local Government Charges Act 2009 introduced a €200 annual tax on non principal private residences, payable by the owners to the local authority in whose area the property concerned is located. Owners of residential rental properties, holiday homes, and vacant residential properties will be liable for the fee, while those in Rental Accommodation Scheme (RÁS), so-called granny flats and mobile homes escape the €200 charge per annum. For further information check www.nppr.ie