Tom Fleming (Kerry South, Independent)
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51. To ask the Minister for Finance if he will address the loophole in the legislation whereby persons who no longer own a property in 2013 are liable for the local property tax on this property in 2014; his views on whether this is totally unfair, unjust and unreasonable; and if he will make a statement on the matter. [51215/13]

Michael Noonan (Limerick City, Fine Gael)
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In accordance with the Finance (Local Property Tax) Act 2012 (as amended), liability for Local Property Tax (LPT) will arise where a person owns a residential property on the liability date, which was 1 May 2013 for 2013, and, for subsequent years, 1 November in the preceding year. The liability date of 1 November 2013, which applies for 2014, is settled and was approved by the Oireachtas in passing the LPT legislation. I have responded to Parliamentary Questions on the liability date on several previous occasions. In reply to Question No. 110 on 27 March last, I specifically stated that where a liable person sells their residential property between 2 November 2013 and 31 December 2013, provided that they owned the property on 1 November 2013, they will be liable to pay LPT on that property for 2014.

I also informed the House in my replies to Questions Nos. 221 (49518/13) and 223 (49556/13) on 19 November 2013 that having a liability date before the year commences is preferable as there is certainty about who the liable person is for the coming year, that person has a reasonable amount of time to make the necessary provisions and they have access to the widest possible range of options for paying the tax.

For a tax such as LPT to function properly, legislation must specify a liability date for the tax to have application for a particular year. Whatever date is prescribed, the question of liability when there is a change of ownership has to be managed, and I expect that the LPT liability involved is likely to be factored in during negotiations between the parties on the sale price and the closing date of a particular contract. As there are a number of LPT issues to be considered when buying or selling a house, detailed guidance on LPT issues arising in the context of the sale or transfer of a residential property was prepared by the Revenue Commissioners in consultation with the Law Society and is available since last August on the Revenue website at and on the Law Society’s website.

An individual selling a property will often be purchasing another property at around the same time. While a vendor who owns a property on 1 November 2013 is liable for the 2014 LPT on that property, if s/he does not purchase another property before 1 November 2013 s/he will not be liable for the 2014 LPT on that "replacement" property - whoever is the owner as of 1 November 2013 will be liable. I have no plans to amend the legislation governing the liability date for LPT.