Róisín Shortall (Dublin North West, Independent)
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To ask the Minister for Finance if a refund of the local property tax will be payable in the circumstances in which a home-owner discovers that they have declared a property value in excess of its true value. [17499/13]

Michael Noonan (Limerick City, Fine Gael)
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The Finance (Local Property Tax) Act 2012 sets out how the tax is to be administered and how a residential property is to be valued for Local Property Tax (LPT) purposes. I am informed by the Revenue Commissioners that LPT is a self-assessed tax so in the first instance it is a matter for the property owner to calculate the tax due based on his or her assessment of the market value of the property. For the purposes of LPT, property values for properties under €1 million are organised into valuation bands, with a range of €50,000 in each band. As property owners will not be required to provide a precise value for their property, it is unlikely that any owner would find themselves in the position where they overpay their LPT.

The initial valuation of a property on 1 May 2013, assuming it is made in good faith, will be valid up to and including 2016 and will not be affected by any increase or decrease in property prices or other changes, during this period. This will ensure a measure of certainty for all property owners. Accordingly, where an owner assesses that the value of a residential property on 1 May 2013 places it in a particular valuation band but, due to a general decrease in property prices after that date the reduction in the value of the property would place it in a lower valuation band, the owner will not be entitled to a refund of tax. By the same token, if the property increases in value in that period, no additional charges will apply. The owner will, however, have the opportunity to re-assess the value of the property on the next valuation date which is 1 November 2016.

Notwithstanding the above, I am advised by the Commissioners that section 26 of the 2012 Act (as amended) provides for the possibility of a refund where an overpayment of LPT was made due to an error or mistake on a Return or a statement made by the liable person, subject to certain conditions being satisfied. This might arise, for example, where a liable person had paid their LPT charge but they subsequently discovered that their property was exempt from the charge. Generally speaking, a liable person seeking a refund because they over-valued their property would not come within the scope of this provision, so it is imperative that the liable person takes due care and attention is self-assessing the valuation band for the residential property.

In the context of section 26 where an error or mistake is proven, I am advised that once a true and complete Return has been prepared and delivered to the Revenue Commissioners and all the information required by the Commissioners to make a determination on the case has been provided, a refund may issue where a claim for repayment is submitted to Revenue within the normal four year time limit.

I am further advised by Revenue that the legislation also allows a liable person to appeal against a decision of the Revenue Commissioners not to allow a repayment.