Written answers

Wednesday, 16 January 2013

Department of Environment, Community and Local Government

Non-Principal Private Residence Charge

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Environment, Community and Local Government if he has an estimate of the overall level of compliance with the non principal private residence charge to date; the initiatives that have been undertaken to ensure that persons living abroad who own a property here are made aware of their obligation to pay the charge; if he has any concerns that a substantial number of persons living abroad may not be aware of the charge and will accrue very large late payment fees; and if he will make a statement on the matter. [1146/13]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Local Government (Charges) Act 2009, as amended, broadened the revenue base of local authorities by introducing a charge on non-principal private residences. The charge is set at €200 and liability for it falls, in the main, on owners of rental, holiday and vacant properties. It is a matter for an owner , whether resident in Ireland or elsewhere, to determine if he or she has a liability and, if so, to declare that liability and pay the charge.

The provision of information to potential liable owners is regarded as an important element of the introduction of the Non Principal Private Residence Charge, given the payment levels in 2009 and in subsequent years. The associated communication campaign, including media advertisements funded by my Department, information made available by local authorities, and website hosted information, in circumstances in which the legal onus is on the liable owner to declare liability and make payment, was cost effective and, in general, achieved its goals in terms of raising awareness and encouraging liable owners to make payment. Much of this information, such as information available online, was available to liable persons living abroad. On its introduction in 2009 the Charge was estimated to apply to some 200,000 properties and was expected to raise approximately €40 million annually. As of 14 January 2013 , the charge had been paid for 2012 in respect of 340, 552 properties, raising €69, 641,680 for that year.

Under the Act, it is a function of a local authority to collect non-principal private residence charges and late payment fees due to it, and all charges and late payment fees imposed and payable to a local authority are under the care and management of the local authority concerned. In this regard, application of the legislation in particular circumstances is a matter for the relevant local authority. Guidelines have also been issued to local authorities in relation to the operation of the "care and management" provisions of the Local Government (Charges) Act 2009 and local authorities are expected to implement these guidelines appropriately.

The NPPR charge has been in operation for more than 4 years and has been the subject of much public discussion and commentary prior to, and following, its introduction. Failure to declare a liability in respect of, or to fail to pay, the charge on non-principal private residences, are offences. I urge all liable parties who have not paid the charge on non-principal private residences to contact their local authority as a matter of urgency. Property owners who are unsure of their liability should also contact their local authority.

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