Written answers
Wednesday, 13 February 2013
Department of Finance
Property Taxation Exemptions
Denis Naughten (Roscommon-South Leitrim, Independent)
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To ask the Minister for Finance if there are any exemptions to the property tax based on household income; if he will outline the mechanism and interest rate for the deferral of a liability to the tax; if the interest rate is variable or fixed; and if he will make a statement on the matter. [7660/13]
Michael Noonan (Limerick City, Fine Gael)
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The Finance (Local Property Tax) Act 2012 provides exemptions for certain residential properties but none of these exemptions is related to the property owner's income. A system of deferral arrangements, for owner-occupiers and tenants on leases that are longer than 20 years, is available where there is an inability to pay and certain specified conditions are met. This option is not available for landlords or second homes. A person who qualified for full deferral can opt to defer 100% of the LPT liability. A person who qualifies for partial deferral can opt to defer 50% of liability and must select a payment option to pay the balance of the liability. Interest will be charged on LPT amounts deferred at a rate of 4% per annum. The deferred amount, including interest, will attach to the property and will have to be paid before the property is sold or transferred.
The deferral conditions are as follows:
| Condition Number | Condition | |
|---|---|---|
| Full Deferral | 1 | Gross income for the year is unlikely to exceed €15,000 (single) and €25,000 (couple) |
| Full Deferral | 2 | For owner-occupiers who have an outstanding mortgage, an adjusted gross income limit applies. The thresholds (€15,000 single, €25,000 couple) may be increased by 80% of the gross mortgage interest payments that a liable person expects to make by the end of the year for which gross income is being estimated. This type of deferral will be available until 31 December 2017. |
| Partial Deferral | 3 | The gross income limits specified at condition number 1 above are increased to €25,000 (single) and €35,000 (couple). |
| Partial Deferral | 4 | For owner-occupiers who have an outstanding mortgage, an adjusted gross income limit applies. The thresholds specified at condition number 3 above (€25,000 single, €35,000 couple) may be increased by 80% of the gross mortgage interest payments that a liable person expects to make by the end of the year for which the gross income is being estimated. This type of deferral will be available until 31 December 2017. |
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