Homeowners who build modular homes in their back garden will be liable to pay a separate Local Property Tax on that home, according to Revenue.
This comes after Revenue were asked about this by the chief executive of the Institute of Professional Auctioneers and Valuers, Genevieve McGuirk.
Ms McGuirk said that people with a main residence and a separate dwelling were currently liable to pay a property tax on that second residence, but was unsure if that applied to modular homes, which were set to be exempted from planning permission under new regulations.
Speaking on Today with David McCullagh, Genevieve McGurk said there were not currently many people with such a home in the back garden and such homes would have had to receive planning permission in the past.
A proposal to allow for planning exemptions for modular homes of up to 45sq/m in back gardens was brought to the Cabinet last month, in order to help ease the ongoing housing crisis and new regulations could be brought in before the Dáil before the summer recess.
This facility would be liable to a Local Property Tax, as it is a separate residence which is permanently attached to the ground. For the property to be considered a home, it would also be required to have sanitary facilities and basic cooking facilities. They must also supply electricity, as well as be structurally sound and be adequate to live in.
They have also said that this tax must be paid, even if the building is unoccupied.
An application must also be made for an Eircode, before this property can be registered with Revenue.
The Revenue Commissioners have said in a statement that Section 2A of the LPT Act provided that "residential property" meant "any building which is in use as, or is suitable for use as, a dwelling" is liable for the separate tax, which they have called a self-assessed tax and the treatment for LPT purposes will depend on the application of the legislation to the facts and circumstances of each separate case.
The building also includes "a structure or erection of any kind and of any materials, or any part of that structure or erection, but excludes a structure that is not permanently attached to the ground".
They also added that part of a building or a structure permanently attached to the ground and that is "immoveable can be a residential property in its own right, and a building can contain a number of different residential properties for the purposes of LPT".
They stated that many of these property owners have garages, greenhouses and other structures on the site of their home, which should be included when owners are making an assessment of the property's value.
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