WHAT IS THE HOUSEHOLD CHARGE?

Christy Parker writes:

When Sinn Féin Cllr Michelle Hennessy -supported by party colleague Eoin Flanagan- opposed Youghal Town Council’s 2012 budget, due to provision being made within it for the Household Budget, it brought strong and swift condemnation for the remainder of the chamber. Amidst the furore, it emerged that many of those present were unsure as to what the exact details pertaining to the charge. Why to we have it? Who is liable for it, how and who do they pay? Who is exempted, etc? Labour Cllr Tara O’Connell determined to research and present the facts to the wider audience.

The following is her findings:

What is the Household Charge?

The EU/IMF Programme of Financial Support for Ireland (bailout!) commit’s the government to the introduction of a property tax for 2012. We are one of the last countries in Europe that does not fund local services through local property-based charges. A property tax, requiring a comprehensive property valuation system, would take time to introduce and accordingly, to meet the requirements in the EU/IMF Programme, the Government decided to introduce a Household Charge in 2012. The Household Charge is an interim measure only and a comprehensive and equitable valuation-based Property Tax will be introduced as soon as possible thereafter. The charge is made on the basis of self assessment and it will be a matter for owners of residential property to register and pay the charge by 31st March.

What’s  the point of it?

Local money for local projects: The fact is, local services, such as fire and emergency services; maintenance and cleaning of streets, planning and development, public parks, street lighting, libraries, open spaces and leisure amenities, etc have to be funded. These facilities benefit everyone. The recession has seen a considerable reduction in Local Government funding from the Exchequer. The government claims the charge -and its anticipated successor, the Property Tax- will raise over €160m per annum, which is expected to be re-distributed to local authorities.

Who must pay?

If you own a dwelling, as against being just a tenant or occupier, you are liable to pay the Household Charge, subject to exemptions and waivers as outlined below. Also, if a house is leased for more than 20 years, the person to whom it is leased is the ‘owner’ for the purpose of the charge. You will get a receipt when you have paid as proof of payment and can also seek a Certificate of Discharge. The proof of payment will be needed if you wish to sell or transfer the property. .

Exemptions:

Properties that are part of the trading stock of a business and have not been sold or been the  source of income since their construction;

Houses owned by a discretionary trust or charity/government department/HSE/local authority/social housing (including dwellings not yet fully bought from a local authority under the shared ownership scheme).

Properties to which commercial rates apply;

Waivers:

You need not pay if you have to vacate the property due to long-term mental or physical illness -this is to cover situations where people are in nursing homes or have had to move in with relatives, etc. (However the waiver does not apply if you are living in the property on January 1st of the year in question.)

Mortgage interest supplement recipients need not pay,

Also waived, for the years 2012 and 2013, are people living in some unfinished housing estates; where a developer is in place but there is no on-site activity and where there are significant planning, building control compliance and public safety issues to be addressed; also where the developer/site owner is effectively not contactable and/or where no receiver has been appointed and serious public safety problems exist. Further details of qaiver qualifying estates wil be published in the Household Charge website shortly.

Having established that we are liable to pay, how do we go about doing so?

People can pay online at www.householdcharge.ie, with CC/debit card or pay in €25 instalments through direct debit. People can also pay in cash at the principal local authority offices of the city or county. Alternatively, forms can be downloaded and a cheque/postal order can be posted to: Household Charge, PO Box 12168, Dublin 1. Registration forms can be obtained from local authority offices, libraries and citizens advice centres. On registering, you may be asked to provide information for the purpose of preparing and maintaining a database of residential properties. The Act provides for data sharing among relevant agencies, such as local authorities, the Deprt of Social Protection, the Revenue Commissioners, the Private Residential Tenancies Board and the ESB, so that liable residential propertied can be identified.

What must I have with me to register?

You will need a PPSN number, name and address of property. People are required to pay by 31st March or register to pay by direct debit by the March 1st.

Penalties:

There will be a ‘late payment fee‘ and late payment interest for those who don‘t pay on time. Late payment fees will incur a 10% penalty on the amount outstanding up to six months after the due date. A penalty of 20% of the amount  outstanding will apply for non-payment between six and 12 months after the due date and penalty of 30% of the amount outstanding will be applied where payment is has not been forthcoming later than 12 months after the due date. For example,

These are similar provisions as to those that apply under Revenue legislation in respect of the late filing and payment of certain taxes and are obviously intended as an incentive to pay the self assessment charge on time.

* Cork County Council has established a household  charge telephone line to facilitate posting of forms to people who do not have internet access. Tele 021 428 5514 ext 5514; Mon-Fri from 9 am to 5 pm.