Michael McCarthy (Cork South West, Labour)
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To ask the Minister for Finance the number of properties in the West Cork region which have been exempted from the local property tax; and if he will make a statement on the matter. [17807/13]

Michael Noonan (Limerick City, Fine Gael)
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I understand that the Deputy is referring to the number of units in unfinished estates in the West Cork region. This is a matter for consideration by my colleague the Minister for the Environment, Community and Local Government.

Section 10(1) of the Finance (Local Property Tax) Act (as amended) defines an “unfinished housing estate” as a development of two or more buildings that is specified in a list prescribed, under section 10(3) of the Act by the Minister for the Environment, Community and Local Government for the purposes of the Act. Section 10(4) of the Act prescribes a range of circumstances to which the Minister shall have regard for the purposes of that Section. The Minister has recently prescribed and published this list. The list can be accessed on that Department’s website, www.environ.ie.

Dara Calleary (Mayo, Fianna Fail)
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To ask the Minister for Finance if his attention has been drawn to an anomaly that appears to exist in the list of properties exempted from the property tax; if he will acknowledge that this anomaly is discriminatory to some disabled persons (details supplied); if he will outline his plans to rectify this anomaly; and if he will make a statement on the matter. [17882/13]

Michael Noonan (Limerick City, Fine Gael)
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In accordance with section 10B of the Finance (Local Property Tax) Act 2012 (as amended), an exemption from the charge to LPT will apply to a residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence, where an award has been made by the Personal Injuries Assessment Board or a court, or where a trust has been established, specifically for the benefit of such individuals. This is one of the few exemptions from the LPT. Limiting the number of exemptions keeps the rate of the tax low for those who are liable to it. Based on the information provided by the Deputy it appears that the individual would not qualify for this exemption.

While exemption cannot be claimed under section 10B of the Act, an incapacitated person may qualify for a reduction in the market value of their property under section 15A of the 2012 Act. This section provides for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided or approved for grant aid, by a local authority. I am informed by the Revenue Commissioners that this relief only applies where the adaptation work increases the market value of the property. Furthermore, the person with the disability must occupy the property as his or her sole or main residence after the adaptation is completed. The reduction in value is limited to the lesser of the chargeable value attributable to the adaptation work carried out on the property and the maximum grant payable under the relevant local authority scheme. The relief ends on the sale or transfer of a property that has been adapted, unless the person with the disability continues to reside in the property.

Given the Budget constraints that exist, and in order to be in a position to keep the rate of tax as low as possible, I decided that an upper limit would be imposed on the reduction in the chargeable value that is allowed. This means that where the chargeable value attributable to the adaptation work carried out on the property exceeds the maximum grant payable under the relevant local authority scheme, the reduction in the chargeable value will be capped at the maximum grant payable.

This relief is linked to the grant scheme for such adaptations that is administered by the local authorities so that there would be some independent verification of the necessity to have particular adaptations carried out. The additional value that is attributable to adaptations carried out to a property can only be deducted from the overall chargeable value where a grant towards the cost of the adaptation has been made by a local authority. This effectively means that tax relief for local property tax purposes is determined by decisions that have been made by a local authority about whether a person with a disability requires the property in which he or she resides to be adapted to cater for the particular disability. Therefore, the Revenue Commissioners will not be required to make such decisions.

Provisions are also made for deferral of LPT for individuals whose income is under certain limits.