Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The review I initiated of the local property tax has been completed by the Department of Finance in conjunction with the Departments of the Taoiseach, Public Expenditure and Reform and Housing, Planning and Local Government, as well as the Revenue Commissioners. In accordance with its terms of reference, the review focused on the impact of house prices on LPT liabilities under a series of scenarios involving different rate and tax band structures. However, against a background of significant but geographically uneven increases in price levels, I believe it is necessary to engage in further consultation to identify a scenario which would deliver on the condition I set, namely, that there should be relative stability for all taxpayers in their liabilities and that any increases should be modest, affordable and fair.

I decided to defer the valuation date from 1 November 2019 to 1 November 2020. This will give sufficient time for the Oireachtas budgetary oversight committee to consider the review report in the context of the committee’s recommendations in its report of 21 March 2018. Importantly, as a result of my decision, the LPT bills of those liable for the tax will not be increasing in 2020.

On deferrals and exemptions, I do not wish to pre-empt the work of the budgetary oversight committee. However, I expect the committee can complete its consideration of the review’s findings and recommendations in a timeframe to allow me to put in place the necessary legislative proposals in advance of any change from 1 November 2020.

There are several exemptions in place which are generally open-ended. However, there are two which have a fixed statutory end date of 31 December 2019. These particular exemptions will be applied in respect of 2020 liabilities by Revenue on an administrative basis pending necessary legislation. One of these exemptions relates to properties purchased by first-time buyers between 1 January 2013 and 31 December 2013. These exemptions will be continued.

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