Peter Mathews (Dublin South, Fine Gael)
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To ask the Minister for Finance his views on correspondence (details supplied) regarding the property tax and the non principal private residence charge; and if he will make a statement on the matter. [11863/13]

Michael Noonan (Limerick City, Fine Gael)
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As set out in the Local Government (Charges) Act 2009, as amended, liability to pay the Non-Principal Private Residence (NPPR) Charge is determined on the basis of ownership of the property in question on the liability date, which is 31 March for 2013. The Local Property Tax (LPT) does not come into effect until 1 July 2013. The Government decided to extend the NPPR Charge into 2013 to ensure as smooth a transition as possible for local authorities, pending the introduction of the full LPT. The inter-Departmental Group chaired by Dr Don Thornhill on the design of a property tax (the “Thornhill Group”) recommended that the NPPR Charge should be absorbed into the LPT as a separate (supplemental) tax, at the existing level (currently €200) applying to non-principal private residences. However, the Government that, while the NPPR Charge will be collected in 2013, when a half-year LPT will also apply, it should be discontinued thereafter. Accordingly, it will not apply as a supplemental tax. As the Deputy is probably aware, the Household Charge and the NPPR charge coexisted in 2012 and certain properties would have been liable to both charges.

John Lyons (Dublin North West, Labour)
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To ask the Minister for Finance the position regarding property tax in respect of a person (details supplied) [11942/13]

Michael Noonan (Limerick City, Fine Gael)
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The Finance (Local Property Tax) Act 2012 sets out how the Local Property Tax (LPT) is to be administered and provides that a liability for LPT will arise where a person owns a residential property on the liability date which will be 1 May 2013 for the year 2013 and for subsequent years, 1 November in the preceding year. Where a property is owned by more than one person, the owners are jointly and severally liable for payment of the tax. This means that Revenue can pursue one person for the full liability and payment by that person discharges the tax liability of all joint owners. For the purposes of completing an LPT Return, joint owners are required to agree a valuation for the property. A single Return should be submitted on behalf of the joint owners. If the LPT is not paid, the Revenue Commissioners can proceed to collect the tax from any of the owners.

An exemption from the charge to LPT is available where a residential property was previously occupied by a person as his or her sole or main residence and has been vacated by the person for 12 months or more due to long term mental or physical infirmity and is not occupied by any other person. However, I am advised by the Revenue Commissioners that the exemption will not apply in this particular case as the parent and children own the property jointly therefore they are jointly and severally liable for the tax.

The Non-Principal Private Residence (NPPR) Charge is a matter for the Minister for the Environment, Community and Local Government. I am informed by the Minister that 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 NPPR 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. A residential property not in use by an owner as his or her sole or main residence is liable for the NPPR charge. In respect of a residential property that is co-owned by several persons, such as a parent and his or her children, each co-owner is jointly and severally liable for the charge.

Section 4(5) of the 2009 Act, as amended, provides an exemption in cases where a property is vacated due to illness, including an incapacity brought about by infirmity due to old age. However, as the specific property in this instance is shared between four liable owners and liability is joint and severable, based on the information provided it would seem that the three sibling co-owners would be liable for the NPPR charge. Should there be any doubt concerning the application of the provisions of the 2009 Act in specific circumstances, legal advice is recommended.

Under the 2009 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.