Finian McGrath (Dublin North Central, Independent)
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To ask the Minister for Finance the position regarding deferral of property tax payment in respect of a person (details supplied). [15798/13]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that in the circumstances outlined a person whose only income is a State pension qualifies for a full deferral of LPT. The deferred tax remains a charge on the property until the property is sold or transferred to another person. Interest will be charged on deferred amounts from the due date of payment until such time as it is paid. The daily rate of interest will be 0.011%, which equates to a rate of 4% per annum. The deferred amount, including interest, will be a charge on the property and will have to be paid to Revenue on the sale/transfer of the property. If the property is valued between €250,000 and €300,000 the liability for LPT for 2013 is €247 and if this amount was deferred for a full year would attract an interest charge of €10. The total charge as a result of deferral is dependent on the total LPT liability and the length of time of the deferral.

As an alternative to deferral the person may opt to have it deducted at source from the pension at just under €10 a week or the amount may be paid through any of the other payment methods by a family member.

If the family member who raised the matter has any further questions s/he may contact the LPT helpline at 1890 200 255 or write to LPT Branch, P.O. Box 1, Limerick.

Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Finance the manner in which local property tax is payable by residents of voluntary housing associations; if the housing association or tenant is liable; and if he will make a statement on the matter. [15923/13]

Michael Noonan (Limerick City, Fine Gael)
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The Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered and how a residential property is to be valued for LPT purposes. Section 7 of the Act provides that voluntary social housing bodies will be liable to pay the LPT on their properties in the same way as any other residential property owner, unless the properties in question are used to accommodate people with special housing needs such as the elderly or people with disabilities. Special housing needs refers to the provision of housing and support for people who have a particular need in addition to a general housing need to enable them to live in the community. To avail of the exemption from LPT, the social housing provider must operate as a charity and must have a general tax exemption granted by the Revenue Commissioners.

I am advised by the Revenue Commissioners that they have had extensive contacts regarding the LPT obligations of social housing providers either directly with the providers themselves or indirectly through the Irish Council for Social Housing. Where a property owned by a provider of social housing is not exempt from the charge to LPT because it is not used to provide special needs accommodation, the Act provides that the market value of any such property will be deemed to fall into the lowest valuation band of zero to €100,000 up to and including 2016. This will result in an LPT charge of €45 per property for 2013 and €90 per year for 2014 to 2016. As the social housing body will be liable for the payment of LPT, it will be a matter for the bodies themselves to decide whether they will pass on the LPT liability to their tenants in the form of an increase in rent or whether they will absorb the liability without recourse to their tenants. In addition, the Act also gives social housing providers until 1 January 2014 to pay the 2013 tax.

I am also advised by the Revenue Commissioners that they have liaised with the social housing sector to establish how social housing bodies will provide them with information in relation to their LPT liability and the timing and manner of the payment of this liability. All social housing providers affiliated to the Irish Council for Social Housing have been contacted in this regard. Revenue is anxious to ensure that any social housing providers who have not already done so should contact it as soon as possible.

Furthermore, the Commissioners have also confirmed that in order to minimise the administration burden on these bodies, it is Revenue’s intention to require each social housing provider to complete and submit a single LPT Return in respect of all the residential properties it owns, rather than seeking a separate Return for each individual property.

Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Finance the procedure to be followed by residents of local authority shared ownership mortgages in respect of the local property tax; if the local authority as co-owner of the property is liable for part of the tax; and if he will make a statement on the matter. [15924/13]

Michael Noonan (Limerick City, Fine Gael)
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The Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered and provides that a liability for Local Property Tax (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. Section 7 of the 2012 Act provides that local authorities will be liable to pay the LPT on their properties in the same way as any other residential property owner, unless the properties in question are used to accommodate people with special housing needs such as the elderly or people with disabilities.

I am advised by the Revenue Commissioners, however, that residential properties purchased under the various local authority shared ownership schemes will also be subject to LPT and that the liable person in these instances will be the purchaser. This is on the basis that under these schemes, the purchaser acquires a leasehold interest in the property for a period that exceeds 20 years. Such a purchaser is in the same position as a property owner who purchases a residential property with a mortgage from a financial institution. Accordingly, there is no reason why such an individual should not be liable for payment of the LPT on the property.

As in the case of any other liable person, the LPT is based on the “chargeable value” of the property, which is the price which the unencumbered fee simple of the property might reasonably be expected to fetch on a sale in the open market were that property to be sold on the valuation date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the property.

I am informed by the Commissioners that LPT is a self-assessed tax. In the context of the question put by the Deputy, it is a matter for the person who is purchasing a local authority shared ownership residential property to calculate the tax due based on his or her assessment of the chargeable value of the property and to make a Return to Revenue. As part of the general issue of LPT Returns which commenced on 11th March 2013, liable persons will also receive a Guide to Local Property Tax, which provides detailed guidance on completing the Return.