Catherine Ardagh (Fianna Fail) | Oireachtas source

As my colleagues have pointed out, the essence of the motion is that local property tax bills will not increase when properties are revalued in 2020, with revaluation due in 2020 as matters stand. Many people are asset rich and cash poor. We have seen increases of up to 100% in house prices, especially in the cities. I work as a solicitor and in cases where the value of a house has increased by 80% or less, the buyer may obtain what is known as general clearance for local property tax purposes. However, specific clearance is needed if the value of a property increases by more than 80%. If that cannot be obtained, the owner must pay the difference between the local property tax paid in 2013 and the LPT that would have arisen if the valuation had been correct in 2013. We have already seen many difficulties in the LPT system and it is beginning to come apart. We know the mechanisms for organising the LPT system must be reviewed.

Many properties at the moment, especially new builds, are not in the LPT system. We can understand that a revaluation or new system must put in place. The motion calls on the Government to ensure that those who pay LPT now do not face increases in their local property tax. As my colleagues pointed out, the value of properties in Dublin has increased by 100% in some cases. This does not give any benefit to many people because they will not move from the homes in which they have lived for past decade and will probably live in for another two decades. Their houses have increased in value but there has been no corresponding increase in their incomes. They cannot afford to pay the substantial increases that may be coming down the line.

It would be very unfair to use this current system and revalue properties at a future 2020 rate. This motion calls on the Government to ensure a fair system is in place and the issues of affordability and ability to pay are examined. The local property tax disproportionately affects people living in Dublin where we have seen the most extreme increase in house prices. We have not seen increases of 100% anywhere other than Dublin. If the revaluation takes place in 2020, as envisaged, Dublin householders be negatively impacted. This motion calls on the Government to ensure that a fairer system is put in place and to promise that no increase in local property tax will affect householders nationwide. As it stands, an increase in LPT would most affect people who own homes in Dublin. I thank the Minister of State for coming to this House. I hope he will support our motion and I look forward to hearing his response.