Property Tax in Ireland: Key Choices
AbstractThe introduction of a property tax is now firmly on the policy agenda. Designing such a tax involves a series of choices which affect how the burden of the tax is distributed across households. In this paper we use SWITCH, the ESRI tax-benefit model, to explore the implications of alternative approaches designed to link a property tax with ability to pay. We also draw on international experience with property taxes to provide insights into choices regarding the structure and operation of a new tax. A key finding is that an income exemption limit below which property tax is not payable (with marginal relief for those with incomes just above the limit) could provide a powerful tool for shaping the income distribution consequences of the tax. Without such an approach, the highest burden would be on those with lowest incomes. However, an income exemption limit for a single person of ?12,000 per year, just above the State Contributory Pension rate, would greatly reduce the impact on low income groups. A higher income exemption limit of ?15,000, with a tax rate of ?2.50 per ?1,000 of house value would mean that the property tax would have little impact on those on the lowest incomes, and have its greatest impact ? a reduction in disposable income of just under 1 per cent ? on those with the highest incomes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Economic and Social Research Institute (ESRI) in its series Papers with number EC11.
Date of creation: Apr 2012
Date of revision:
Ireland/property tax/taxes/Policy/income distribution;
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-06-13 (Accounting & Auditing)
- NEP-ALL-2012-06-13 (All new papers)
- NEP-PBE-2012-06-13 (Public Economics)
- NEP-PUB-2012-06-13 (Public Finance)
- NEP-URE-2012-06-13 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mayor, Karen & Lyons, Seán & Tol, Richard S. J., 2010. "Designing a property tax without property values: Analysis in the case of Ireland," Papers WP352, Economic and Social Research Institute (ESRI).
- Thomas Conefrey & John D. Fitz Gerald & Laura Malaguzzi Valeri & Richard S.J. Tol, 2013.
"The impact of a carbon tax on economic growth and carbon dioxide emissions in Ireland,"
Journal of Environmental Planning and Management,
Taylor & Francis Journals, vol. 56(7), pages 934-952, September.
- Thomas Conefrey & John FitzGerald & Laura Malaguzzi Valeri & Richard S. J. Tol, 2008. "The Impact of a Carbon Tax on Economic Growth and Carbon Dioxide Emissions in Ireland," Papers WP251, Economic and Social Research Institute (ESRI).
- Karen Mayor & Seán Lyons & David Duffy & Richard S. J. Tol, 2012.
"A Hedonic Analysis of the Value of Rail Transport in the Greater Dublin Area,"
Journal of Transport Economics and Policy,
London School of Economics and University of Bath, vol. 46(2), pages 239-261, May.
- Mayor, Karen & Lyons, Seán & Duffy, David & Tol, Richard S. J., 2008. "A Hedonic Analysis of the Value of Rail Transport in the Greater Dublin Area," Papers WP264, Economic and Social Research Institute (ESRI).
- Irvine, Ian J., 1984. "A Study of New House Prices in Ireland in the Seventies," Research Series, Economic and Social Research Institute (ESRI), number GRS118.
- Maurice J. Roche, 1999. "Irish House Prices - Will the Roof Cave In?," The Economic and Social Review, Economic and Social Studies, vol. 30(4), pages 343-362.
- Thomas Conefrey & John Fitz Gerald, 2010.
"Managing Housing Bubbles In Regional Economies Under Emu: Ireland And Spain,"
National Institute Economic Review,
National Institute of Economic and Social Research, vol. 211(1), pages 91-108, January.
- Conefrey, Thomas & FitzGerald, John, 2009. "Managing Housing Bubbles in Regional Economies under EMU: Ireland and Spain," Papers WP315, Economic and Social Research Institute (ESRI).
- Conefrey, Thomas & FitzGerald, John, 2010. "Managing Housing Bubbles in Regional Economies Under EMU: Ireland and Spain," Papers RB2010/2/1, Economic and Social Research Institute (ESRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sarah Burns).
If references are entirely missing, you can add them using this form.