Paschal Donohoe (Dublin Central, Fine Gael)

I move amendment No. 4:

In page 3, to delete line 27, and in page 4, to delete lines 1 and 2, and substitute the following: “(a) section 7;

(b) section 8;

(c) section 11.”.

This section amends the exemption for properties damaged by the use of defective concrete blocks in their construction as provided for in section 10D of the Finance (Local Property Tax) Act 2012. The purpose of this section is to ensure that exemption is up to date. I am sorry; I have been speaking to the section. I will finish and then speak to the amendment itself. The purpose of this section is to ensure the exemption is up to date, taking account of changes made to the defective concrete block remediation scheme since 2021.

Amendment No. 4 removes a reference to section 8 of the Bill as published, which relates to the increase in the upward variation threshold for the local adjustment factor, LAF. Amendment No. 6 concerns a reduction in LPT that is available for homes that have been adapted to make them more suitable for a person with a disability. Section 8 of the Bill as published would allow local authorities to vary LPT upwards by up to 25% from the year 2026 onwards. By amending section 3 in this manner, section 8 will not automatically come into effect on the enactment and commencement of the Bill. Instead, it is intended to commence the provisions of section 8 separately from other LPT provisions at a date agreed between myself and the Minister for Housing, Local Government and Heritage.

I propose the deferral of this change to the LAF following consultation with the Minister, Deputy Browne, who highlighted the significant administrative challenges for local authorities if the increase in the LAF were to take effect next year. In a revaluation year, local authorities are required to notify Revenue of the LAF by 31 August. As councillors do not meet in August, the LAF decision must be made by the end of July. Before the LAF meeting, local authorities are required to hold a public consultation of at least 30 days and provide a report on this consultation to elected members a week before the LAF meeting. There would not be enough time available for local authorities to undertake the public consultation required on the increase to 25%, hold the necessary meeting and notify Revenue in the time now available. In addition, approximately half of all local authorities have made the LAF decision for next year under the current maximum increase of 15%. Given the time now available, it is not possible for them to revoke the previous decision made and conclude a new LAF process. I therefore propose to amend section 3 to remove reference to section 8.

Amendment No. 4 also ensures that a new section 7 is referenced in section 3, thereby causing this section to come into effect from 2026. The inserted section relates to properties adapted for use by people with a disability. Section 15A of the Finance (Local Property Tax) Act 2012 provides for a reduction of €50,000 in the chargeable value of a property that has been adapted in this manner. This figure of €50,000 is equivalent to the difference between LPT valuation bands between 2013 and 2021. The policy objective of this section is to ensure that homeowners with a disability whose properties have realised an increase in value due to necessary adaptations having been made are not liable for a higher LPT charge as a result of those necessary adaptations.

When the valuation bands were widened to €87,500 in 2021, the 2021 Act did not introduce a corresponding amendment to the Act due to a drafting oversight. When this was identified, my Department requested Revenue to allow a reduction in the chargeable value of €87,500 on an administrative basis to ensure a reduction of one valuation band for affected taxpayers. On commencement of this Bill, the valuation bands will be widened to €105,000. The amendment proposes to reduce the chargeable value of a property by this amount for homes that have been adapted in this manner where the conditions are met. This will ensure the administrative practice that has been in place since 2021 is put on a legislative footing. It will also ensure that homeowners with a disability who have had their homes adapted to make them more suited to them and whose homes are worth more as a result of same can avail of a reduced valuation band and ultimately pay the LPT charge that would be due if they had not had to make the necessary adaptations.

Finally, amendment No. 4 updates the numbering of the referenced sections to take account of the proposed inserted section.

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