Full of bright ideas today!
So for reasons I never fully understood, we chose to implement LPT based on market value; and self assessed market value at that.
Subjective, open to interpretation, two houses on same street different market value, all that mularky.
What if we treated LPT like motor tax?
Using combination of square footage & weighted BER rating.
Back of envelope figures.
Rating per square foot is say 20%
So 3000 sq ft = €600
But house has BER of A2, so gets 50% discount = net LPT €300.
1000 sq feet @ 20% = €200
BER rating D or below attracts a weight of say 1.5 so property tax is €300.
Your 3000 sq ft property with a BER of E would get you an LPT of 600 * 1.5 = €900
So there's an incentive to either downsize or improve your BER.
Much as the aim is re Motor Tax.
So for reasons I never fully understood, we chose to implement LPT based on market value; and self assessed market value at that.
Subjective, open to interpretation, two houses on same street different market value, all that mularky.
What if we treated LPT like motor tax?
Using combination of square footage & weighted BER rating.
Back of envelope figures.
Rating per square foot is say 20%
So 3000 sq ft = €600
But house has BER of A2, so gets 50% discount = net LPT €300.
1000 sq feet @ 20% = €200
BER rating D or below attracts a weight of say 1.5 so property tax is €300.
Your 3000 sq ft property with a BER of E would get you an LPT of 600 * 1.5 = €900
So there's an incentive to either downsize or improve your BER.
Much as the aim is re Motor Tax.
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