Patrick O'Donovan (Limerick, Fine Gael)
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To ask the Minister for Finance if he will make provision to allow local authorities to classify the way estates are part of the forthcoming local property tax and if he will allow the classifications to be approved by the elected members on the recommendation of the City or County Manager; and if he will make a statement on the matter. [4923/13]

Michael Noonan (Limerick City, Fine Gael)
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I understand that the Deputy is asking about the process by which residential estates are classified as ‘unfinished estates’ for the purpose of exemption from the Local Property Tax. The Finance (Local Property Tax) Act 2012 sets out in detail how the tax is to be administered and provides how a residential property is to be valued for LPT purposes. The Act also provides for a number of specific exemptions from the charge.

An exemption will apply to unfinished housing estates as prescribed by the Minister for the Environment, Community and Local Government. In determining whether an unfinished housing estate should be prescribed, the Minister for the Environment, Community and Local Government must satisfy himself or herself that the development in question is incomplete to a substantial extent. Examples of the criteria that the Minister for the Environment, Community and Local Government should take into account in such a determination include the state of completion of roads, footpaths, lighting facilities, water and sewerage facilities within the development as well as compliance with the terms of any planning permission applicable to the development and the extent to which roads, open spaces, car parks, sewers, water mains, drains or other public facilities in the development have been taken in charge by the local authority concerned. These criteria are set out in section 10 of the Finance (Local Property Tax) Act 2012.

Properties will not be regarded as relevant residential properties for the purposes of the local property tax, and will not be subject to the local property tax so long as they remain on the prescribed list of unfinished housing estates. There are no plans to devolve responsibility for compilation of the prescribed list from the Minister for the Environment, Community and Local Government to local authorities. However, elected members may make recommendations on the matter at any time to city or county managers or directly to the Minister.