What determines the amount of Local Property Tax (LPT) a homeowner pays?

The amount of Local Property Tax (LPT) that a homeowner pays is based primarily on the market value of the property. This tax system is designed to reflect the current worth of a property in the real estate market, which can fluctuate over time due to various factors such as demand, location, and economic conditions. When the market value of a property increases or decreases, it directly impacts the amount of tax owed. This approach ensures that homeowners are taxed according to the potential revenue their property can generate, aligning the tax burden with the economic realities of property ownership.

The other factors, such as the size, location, or age of the house, may influence the market value but are not the direct determinant for calculating the LPT itself. The tax is specifically tied to the assessed value that reflects the property’s market conditions, making the market value the key factor in determining the tax owed.