Alan Farrell (Dublin North, Fine Gael) | Oireachtas source

Given the statement by the Revenue Commissioners last week that they will be compiling information on valuing properties for the local property tax beginning in March, it is necessary to provide more information for the public. Assumptions have been made in the media. I have spoken to individuals who are uncertain as to the valuation methods to be used by the Revenue Commissioners. If the Irish Independent is to be believed, surmising from the statement by the Revenue Commissioners, stamp duty records, electricity bills, rental details and household charge records will be used. With the exception of stamp duty, I am not sure how any of those payments are connected in any way to the value of a property. One would assume the vast majority of stamp duty records relate to the period before 2008, in which case, it would be very difficult to value these properties even if one were to take the industry average of 30% to 60% of loss in value since that period. It is very difficult to arrive at an accurate figure, even if only indicative.

I refer to reports in the media that property owners will have the option of valuing their property. I raised this matter in early January. It also came up for discussion in my constituency over Christmas. I refer to properties that are extremely difficult to value, such as those in estates affected by pyrite. There have been no sales of properties in the vast majority of those estates.

It will be almost impossible to put a value on the property where there is no comparable property on the market within a couple of miles. It would be difficult, even in urban environments such as my constituency, to value these properties, notwithstanding that the Minister has rightly announced that pyrite affected properties are to be exempt. I refer to properties that might have been repaired and on which the local property tax will be due.

The Office of the Revenue Commissioners has set out in its timeline that it will be issuing letters on self-assessment at the end of March, stipulating a valuation date in the middle of May. I am slightly concerned about where the figures are coming from and the right of reply of the homeowner. To what lengths must one go in valuing one's property? Must one engage the services of a valuer? If so, how much will it cost? Will the industry push up its prices? Perhaps it will, given that an opportunity presents itself to those concerned. I do not really have a problem with this in that people pay for services provided and valuation is a service, but many homeowners are under severe stress financially. Adding to the local property tax is not a step we should be taking.

The Revenue Commissioners' ability to stand over stamp duty figures, in particular, will present a difficulty. There is a large number of unique properties, including those in rural environments. I am clearly not talking about three-bedroom semi-detached bungalows but about properties above and beyond these, perhaps those built in the 1990s or 2000s. These properties are very difficult to value right across the country. They may not have sold for a number of years and it would be very difficult for us to value them. What leeway will the Revenue Commissioners provide in the valuation process for these homes?

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