Written answers

Tuesday, 18 December 2012

Department of Finance

Property Taxation

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael)
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To ask the Minister for Finance if he will review a case regarding the assessment of the value of certain properties for the local property tax (details supplied) [56490/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Revenue will provide guidance on how to value property early next year, and will engage in a comprehensive information campaign, including writing to residential property owners in March 2013 enclosing a detailed explanatory booklet on the operation of the Local Property Tax (LPT), valuation procedures and payments methods, as well as an LPT Return form for completion. The initial valuation of property, to be assessed as on 1 May 2013, will be valid up to and including 2016. This will provide certainty for taxpayers.

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael)
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To ask the Minister for Finance if there will be provisions in the property tax for properties (details supplied). [56491/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Finance (Local Property Tax) Bill 2012, as published, provides for exemptions from and deferral of payment of Local Property Tax in certain circumstances. There is no blanket exemption in cases of divorce. A system of voluntary deferral arrangements focused on particular categories of householders will be implemented to address cases where there is an inability to pay the LPT under specific conditions.

Deferrals can only be claimed where the liable person's income is below the relevant threshold. A full deferral is available where:

- Gross income does not exceed €15,000 (single) and €25,000 (couple).

- For income stressed owner occupiers an adjusted gross income limit will apply. Where gross income is below the relevant income limit (€15,000/€25,000) plus 80% of mortgage interest, deferral will be available up to end 2017.

A partial deferralmay be available where the income or adjusted income is €10,000 above the income limit (€15,000/€25,000/or adjusted with to permit deferrals of up to 50% of LPT liability. Interest will be charged on deferred amounts at c. 4% per annum (simple interest). Deferred LPT and interest will have to be discharged on the sale/transfer of the property. The deferral system as recommended in the Thornhill report and as modified in the Bill focuses on the ability to pay the tax and is based on the income of the liable person.

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