Eight in ten (81%) Irish people believe the Local Property Tax (LPT) should be abolished completely.This is according to the first instalment of the latest Taxback.com Taxpayer Sentiment Survey 2023, which polled over 1200 taxpayers nationwide.

Almost one in two (47%) believe the LPT should be eradicated because household income – and therefore the ability to pay the tax – is not reflected in the rates charged. About one in three (34%) are calling for the LPT to be abolished because they believe the funds raised through this tax are not effective in their use.

Furthermore, the survey shows widespread confusion amongst the public about who is liable for the LPT and who is not – at least 42% of survey respondents were incorrect in their assessment. Almost one in five (17%) incorrectly believe LPT does not need to be paid if a property is more than five years old, more than one in ten (13%) wrongly believe owners of business properties should pay the tax, while one in twenty (5%) incorrectly believe that tenants are liable for the LPT. 

However, it is owners or joint-owners of residential properties who are liable for the LPT, regardless of when the property was built – though residential properties that are unsuitable for use as a dwelling and are also unoccupied are not liable and there are also some properties which are exempt from the LPT.

Commenting on the survey, Consumer Tax Manager with Taxback.com, Marian Ryan said, "Some of today’s property owners will also have paid exorbitant stamp duty when initially buying their home – particularly if they bought homes in the early Noughties, which means they’ve effectively been double property-taxed. Given the huge cost of housing in this country, and the pressure that so many households are under due to the cost-of-living crisis, surely it is time for the Government to consider abolishing the LPT – or making the LPT system fairer."

She added, "Property tax can be a cause of huge worry for many homeowners because it can go up from year to year – for reasons outside their control. Local authorities for example have the power to either increase or decrease the base LPT rates by up to 15% each year.  Many homeowners also saw their LPT bills rise last year – due to the overhaul of the property tax system in late 2021. The same could happen in late 2025 when the system is due another overhaul."

Source: www.businessworld.ie