Clare Daly (Dublin Fingal, Independent)
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7. To ask the Minister for Finance further to Parliamentary Question No.42 of 28 February 2017, if he will address a situation raised in correspondence (details supplied) regarding a local property tax exemption. [22893/17]

Clare Daly (Dublin Fingal, Independent)
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21. To ask the Minister for Finance further to statements in Dáil Éireann on 4 April 2017 that the Revenue Commissioners operate an administrative solution to the pyrite local property tax problem, if he will review the pyrite local property tax exemption in view of the fact that home owners whose properties cannot be sold or renovated due to the presence of pyrite are unable to avail of the exemption as a result of the way the legislation is constructed. [23567/17]

Clare Daly (Dublin Fingal, Independent)
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It is regrettable that we are back here again. In February, during questions to the Minister, I highlighted an anomaly in the LPT legislation which means that some property owners whose dwellings have pyrite are not able to avail of the pyrite exemption because of the manner in which the legislation has been constructed. The Minister agreed with me at that time and said that Revenue had what he called an "administrative" solution. Subsequent to that, however, home owners have contacted Revenue only to be told to "shove it". They are not getting an exemption, even though their houses are essentially value less. We need to radically change the legislation.

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 7 and 21 together.

I understand my Department has clarified with the Deputy that her question relates to statements made in the Dáil on 28 February 2017 rather than on 4 April.

The Deputy will be aware that the qualifying criteria in respect of exemption from LPT for properties with 2significant pyritic damage" were modified by the Finance (Local Property Tax) (Amendment) Act 2015 which was signed into law on 20 December 2015. The Act relaxed the qualifying criteria which was one of the recommendations made by Dr. Don Thornhill in his review of the operation of the local property tax on behalf of the Government in 2015. The changes are significant in that where a property has been included in the pyrite remediation scheme by the Pyrite Resolution Board, PRB, without testing, or a property has been remediated by a guarantee company or by a builder or developer or where a party is compensated in lieu of remediation, without testing, Revenue will now accept confirmation of remediation or compensation from the either the PRB or the relevant party for the purposes of exemption without testing or NSAI certification.

In regard to the operation of this exemption, Revenue is obliged to act in accordance with the provisions of the Finance (Local Property Tax Act) 2012, as amended, which requires that an LPT exemption on foot of pyritic damage can only apply to properties meeting specific criteria. A property can only be classified as exempt and the LPT charge eliminated where the level of pyritic damage is confirmed in accordance with the provisions of section 10A of the Act and the relevant documentation is presented to Revenue.

The Act provides that properties that are not exempt are liable for LPT. A property that does not qualify for exemption and continues to be in use or is suitable for use as a dwelling is liable for LPT and must be placed within a valuation band. While the valuation of a property is a matter of self assessment, a property that is valued between €0 and €100,000 falls within the lowest valuation band, as per section 17 of the Act, and attracts the minimum LPT charge of €90 per annum which may be increased or decreased by up to 15% by the relevant local authority. Therefore, it is not possible for Revenue to grant an exemption or a reduction in the LPT liability on an administrative basis where the property does not qualify for exemption under the criteria set out in Section 10A of the Act.

Regarding my response to a supplementary question from the Deputy on 28 February, and in case there is any misunderstanding, let me emphasise the factual position in relation to the LPT charge on such properties. As I outlined at that time, where the property is not exempt there is an opportunity, with the agreement of Revenue, to declare a new valuation which, while not totally eliminating the charge, may result in a significantly reduced liability for the householder. I am glad to have the opportunity to clarify the matter.

Revenue has confirmed that it accepts that the presence of pyrite, whether it has already caused structural damage or has the potential to do so, can have a negative effect on the market value of a property and persons who incorrectly valued their properties in 2013 should advise Revenue of the correct valuation and of the grounds for reducing the original value.

Clare Daly (Dublin Fingal, Independent)
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It is wholly unacceptable, having posed a question about deficiencies in existing legislation, to get an answer, half of which is taken up with telling me what the legislation contains. I know what the legislation contains which is why we are here. The legislation is not fit for purpose and in fairness, the Minister agreed with me on that point previously. Under the legislation as it is currently constructed, homes with pyrite which are valueless and which people cannot renovate, extend, decorate or sell but which do not have a sufficient amount of pyrite to warrant inclusion in the pyrite resolution scheme do not get a local property tax exemption. The Minister acknowledged the problem the last time we spoke about this and said that there was an administrative solution. What he seems to be telling me now is that people can say that their property is basically valueless, that it is in the lowest category of between €0 and €100,000, and then only pay €90 per year but that is not good enough.

It is not good enough, having acknowledged that there is a deficit or an anomaly in the legislation, to ask people to make payments on properties with no value in the same way as those whose properties have a value are making payments. I would like to hear the Minister's thoughts on the need to change the law in this area. I appreciate that it might be difficult for him to make such a change, given that he has said he is not interested in standing for office again. I realise we are in an intermediate period, but that is of no relevance to those who are required to make payments on valueless properties.

Michael Noonan (Limerick City, Fine Gael)
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I will continue to carry out my duties until I am replaced by an incoming Minister for Finance. I told the Deputy in February that a householder who posted a new valuation to Revenue could have his or her local property tax liability significantly reduced, if not eliminated completely. In other words, a person who valued his or her property in one of the higher bands before the appearance of pyrite in the building can reduce the valuation to the lowest band, from zero to €100,000, now that pyrite has appeared. I emphasised to the Deputy that in such circumstances, Revenue could not eliminate completely the need for a valuation. However, when it is administering the scheme, it can accept a change in the valuation of a property such as those with which the Deputy is most familiar in her local authority area in order that the householder will pay the lowest level of €90, which could fall to approximately €70 if the local authority has exercised its discretion to reduce the rate by 15%, rather than the €213 level. That is the position. I never said we had changed the law in that regard. I said the valuations posted in 2013 could be changed if they had subsequently proved to be excessive.

Clare Daly (Dublin Fingal, Independent)
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I did not imply that the Minister had said he would change the legislation. He said the existing system was flexible enough to overcome the anomaly. When he said a homeowner could achieve a substantial reduction in his or her property tax liability, if not have it eliminated completely, the implication was that it could be eliminated completely under the current system. He has clarified the position today because this a self-assessed tax, that a person in these circumstances should declare that the value of his or her home is in the lowest bracket in order that his or her property tax liability will be reduced. While I accept his clarification, I put it to the Minister that he has previously acknowledged that the problem is with the law. I have attempted to change the law by tabling a Bill to amend the existing legislation. I have been in contact with the Bills Office for two months about my Bill. It sent me a letter today to tell me that, as an Opposition Deputy, I could not propose legislative changes that involved an appropriation of revenue. My changes would mean that people who have valueless properties would not have to pay €90. I do not think they should have to pay anything. Under the legislation as constructed, people whose houses have been fixed and do not have pyrite sometimes do not have to pay property charges for up to six years after selling these properties. It is an absolutely ridiculous scenario. Having gone to the trouble of proposing new legislation in this regard, I have been told by the clerk that I cannot change the law. Therefore, I appeal to the Minister at the eleventh hour of his period in this role to consider tabling legislation to make the change I am seeking. It is clear from his responses that legislative change is needed to give justice to families who have already been screwed and do not need to be screwed again.

Michael Noonan (Limerick City, Fine Gael)
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Perhaps the words I used the last day might have been clearer. I said that when Revenue received a new valuation on a self-assessment basis, it could not eliminate the tax liability completely but that it could reduce it significantly in accordance with the law. An example of a significant reduction would be a change to a €70 or €90 property tax level, depending on whether the local authority in question has used its discretion to reduce the figure by 15%. I have no plans to introduce amending legislation dealing with the local property tax. In the course of every year the Department of Finance and Revenue have oversight of the legislation governing tax collection. If the Deputy were to make a submission to Revenue asking it to re-examine this matter, it might look on it favourably. There is an argument that if a family are in occupation of a house that is their principal primary residence, it has some value. If it is being used as a residence, it does not stand up to reason to say it has no value.