Your New Second Mortgage

Working out how much the Government received from the European Central Bank, to deal with the Banking Crisis of 2008 can be difficult. Presumably because the figures involved are deeply frightening. We talk in Billions (that’s nine zero’s).  And because I could not fathom it out, I went to Wikipedia and it turns out its 67.5 Billion Euros.

This is debt that has now been socialised – you always knew socialism was a bad idea. And here’s all the proof you need. In terms of cost per citizen this amounts to (67.5B/4.581M) – €14,700.

Of course there’s a problem with this figure, it includes children and old people, who don’t work, or generate income, so it would be pointless to go asking them for 15 grand. It may be more useful to think in terms of households – so here goes. (67.5B/1.658M) – €40,700

This means if you are a householder you need to be afraid. Your second mortgage has arrived, and its 41K. You might think this is politically unacceptable and you would be right. This is why the European Central Bank has not sent you a Direct Debit Form. They are worried you might find that a bit pushy.

Instead it is forced to rely on the government finding sneaky ways to extract this money from households. And it is one of these sneaky ways that I wish to consider here. The Local Property Tax, which we are told goes towards funding Local Government, rather than paying off the Second Mortgage that you didn’t want and definitely didn’t enjoy spending in the first place.

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Local government gets its money from a variety of sources, Car Tax etc. (so called Goods and Services), Rates – a Tax on local business premises and Government Grants.

 Government Grants – amount to just over a third of Local Government funding, on average. Instead of paying this money, which amounts to €1.3 Billion a year to local Authorities. The Government has been told that it’s a lot better idea to pay it to the ECB.

So to raise this amount from Households,the Government is introducing the “Local” Property Tax – this is essentially a levy of 0.18% on the perceived value of a property. And it would say that this is fair and equitable. Sido would maintain this is not the case.

Let’s consider the Taoiseach’s constituency Co. Mayo. Government Grants would amount to (78M/48200) around €1,600 per household Consider Sido’s County – Roscommon (36.25M/23700) just over €1,500 per household. All this sounds fairly generous doesn’t it? – except its paid for from our taxes VAT etc.                                                                          It isn’t so generous when it gets to Dublin though (153.5M/468000). Crikey just €330!         It would seem a city like Dublin is more efficient to run than the rural Manors. This is also true of cities like Galway, Cork and Limerick.

And there’s a Double Whammy. The injustice is compounded because property values in these urban areas are higher. Seriously, even in Limerick. As a consequence they pay more property tax.                                                                                                               The government suggests you can estimate a Tax Valuation for your property by going to Daft.ie  A site which lists the Average Aspirational Price for properties in a certain area.

 Aspiration is of course different from the real value of your property. Using the new Central Property Price database we can put a value on Aspiration of somewhere between 20 to 25%. It is this lower figure, that most people will be using when asked to value the price of their house. Because people aren’t erm …Daft.

Sido used these lower prices to generate a property tax for Dublin. He found that government in the past contributed 153.5M but would now raise 150M in property taxes. Arguably a break even so.

Compare this to say Carlow where the government contribution is 26M but the potential property tax would seem to be around 4M

Roscommon is an odd County because of very low property prices, as mentioned before the government Contribution is 36.25M the property tax that might be raised is around 4.5M

So in conclusion – The Dubs are going to be wearing the Green jersey all the way to the European Central Bank – Heck the Government might even turn a profit on you and why not. Consider it payback time for the trams bitches! Sido salutes you from his country pile.

Because I don’t know a lot about Dublin. And in any event totally approve of the idea of Dubs being charged more than Culchies. I can’t say whether the Government will break even or make a profit. I have mined a load of Data and transferred it to Excel. However I need someone who is familiar with the Dublin Area to combine it and work out the story.

There are three simple tables I have extracted As Follows

Cost of Government Grants to Local Authorities (Dublin) in 2012 (CSO)

Dun Laoghaire – Rath

48,621,600

Fingal

48,162,500

South Dublin

56,693,400

Total

153,477,500

Households in the Dublin Area (CSO)

Dublin City

208716

Dun Laoghaire-Rathdown

75953

Fingal

93305

South Dublin

90148

468122

Daft.ie  Valuation (Please reduce these by dividing by 1.25)

Location

House Value

City Centre

            155,379

North Dub City

            207,514

North Dub County

            202,253

West Dub County

            164,945

South Dub City

            214,064

South Dub County

            345,324

Local Property Tax is 0.18% in 2014 – Magic Michael’s Introductory Special Offer 0.09% for 2013!! – (Terms and Conditions apply)

Your mission (should you choose to accept it) is to combine the Valuation table with the House price table and see if you arrive at a figure over the 153.5 M given as the total of government funds for Dublin in 2012. If you can then you might want to tell your TD about it.

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