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What is the Household Charge? 

It is a property tax which comes into effect from the 1^st January 2012.  Owners of all residential property in Ireland from the 1^st January 2012 must pay the household charge tax of €100 per property by the 31^st March 2012.  

Certain property is exempt from paying the household charge:

• Residential properties abroad and not in Ireland
• Mobile Homes
• Residential properties that are part of the trading stock of a business and have not been sold or been the source of any income since construction,
• Residential property owned by the Government or the Health Service Executive,
• Residential property vested in a Housing Authority, including property where households are purchasing their homes under the Share Ownership Scheme and where the local authority still retains an ownership stake,
• Voluntary and co-operative housing,
• Residential property to which commercial rates apply,
• Residential property owned by a charity or comprised in a discretionary trust, and
• Residential property where a person has to leave their house due to long-term mental or physical infirmity e.g. a person that has moved into a nursing home for over a year and their property is not being rented.

There are also certain waivers from payment of the household charge as follows:

• Owners of residential property entitled to a mortgage interest supplement. 
• Owners of residential property located in prescribed unfinished housing estates.

If the waiver applies to you it is still necessary to lodge the application and have the waiver validated.

How can I pay the household charge?

The household charge can be paid in four instalments of €25 by direct debit. The Direct Debit Mandate must be set up by 1st of March 2012 otherwise penalties may apply. If the charge is not paid by the 31^st March 2012, late payment fees will apply.

1. Online:  www.householdcharge.ie – very easy to use on line system, to enable you to pay the household charge by credit card/debit card.  Your PPS no is required to process the charge on line.
2. Payment by cheque, postal order, etc to the Local Government Management Agency. 
3. Payment will be accepted in the offices of your County/City Council.

Both the household charge and any accumulated late payment fee will be a charge against the property.  It is important to note that any household charges or late payment penalties due on a residential property will have to be discharged, in full, before a transfer or sale of the property.

By Caroline Browne, Solicitor

Disclaimer: the information herein is intended as a general guide only. No responsibility is accepted for errors or omissions howsoever arising. Specialist legal advice from a solicitor should be sought before taking any action in response to the issues raised in this article