Revenue has confirmed that homeowners who construct modular homes in their back garden will be required to pay a separate Local Property Tax on that dwelling.
The clarification came following a query put to Revenue by Genevieve McGuirk, chief executive of the Institute of Professional Auctioneers and Valuers, reports RTE.
She explained that people who own a main residence and a separate dwelling are currently liable to pay a property tax on that second residence, but it had not previously been clear whether this extended to modular homes, which under new regulations are set to be exempt from planning permission.
The proposal to grant planning exemptions for modular homes of up to 45sq/m in back gardens was brought before Cabinet last month as part of a government effort to ease the housing crisis, with new regulations potentially coming into force before the Dáil summer recess, reports RTE.
McGuirk told the Today with David McCullagh radio programme that relatively few people currently have such a home in their back garden, and that such properties would previously have required planning permission.
As a separate residence that is permanently attached to the ground, such homes would be liable for the Local Property Tax, reports RTE.
The dwelling would also need to have sanitary and basic cooking facilities, a water and electricity supply, be structurally sound and habitable in order to be classified as a home.
The Institute of Professional Auctioneers and Valuers noted that such a property would need to be valued independently and receive its own property ID and Eircode, reports RTE.
They added that the LPT would have to be paid even if the building remained unoccupied, and that an Eircode application must be submitted before the property can be registered with Revenue.
The Revenue Commissioners confirmed that a modular home on the grounds of a property, permanently attached to the ground and suitable for use as a separate dwelling in its own right, may attract a separate LPT charge, reports RTE.
In a statement, Revenue cited Section 2A of the LPT Act, which defines a “residential property” as any building in use as, or suitable for use as, a dwelling, noting that the definition of a building includes structures permanently attached to the ground.
Revenue also noted that many property owners have garages, greenhouses and other structures on their property, which should be taken into account when making a proper assessment of the correct property value, adding that the LPT is a self-assessed tax and that each case will be treated based on the relevant facts and circumstances, reports RTE.
Tell us your thoughts in the Facebook post and share this with your friends.
