Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context | Oireachtas source

81. To ask the Minister for Finance if the family of a disabled child who paid for the renovation of their home out of their own finances is entitled to an exemption from the local property tax; and if this is not the case, the reason for same. [54725/13]

Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context | Oireachtas source

82. To ask the Minister for Finance the reason the family of a disabled child is being forced to pay the local property tax after paying for home renovations (details supplied). [54727/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 81 and 82 together.

It is also unclear whether the Deputy is referring to two separate families, or whether both Questions relate to the same case.

Based on the information supplied by the Deputy it is not possible to provide a definitive reply, however, the following general information may be useful.

While there is no specific exemption from Local Property Tax (LPT) for a person with a disability or for houses which have been modified to cater for a person with a disability, in certain limited circumstances an exemption may apply. Section 10B of the Finance (Local Property Tax) Act 2012 (as amended) provides that an exemption from the charge to LPT may 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. In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. The exemption ends if the property is sold and the incapacitated individual no longer occupies it as his or her sole or main residence.

I am advised that section 189(A) of the Taxes Consolidation Act 1997 (as amended), defines 'incapacitated individual' as an individual who is permanently and totally incapacitated, by reason of mental or physical infirmity, from being able to maintain himself or herself. Entitlement to the exemption provided for in section 10B will depend on whether the extent of a person’s disability is such that they are permanently and totally incapacitated from being able to maintain himself or herself.

Section 15A of the 2012 Act (as amended) 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, and where the adaptation increases the market value of the property. As the Deputy states in both Questions that the family has paid for the renovation themselves, it appears that they would not be eligible to apply for this relief.

It should also be noted that the impact of such adaptations on a property may decrease its value which may in turn impact on the LPT liability.

With regard to Question 54727/13, given the circumstances of the case, Revenue will make direct contact with the person to discuss the specifics and advise on any possible entitlement under either section 10B or section 15A of the 2012 Act (as amended).

Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

83. To ask the Minister for Finance if he has considered allowing an exemption to the local property tax for an estate (details supplied) in County Wicklow in view of the serious failures by the local authority as revealed by a 2007 fire and safety audit that it conducted; if his attention has been drawn to the upgrades being made by the local authority to all local authority-owned properties on the estate but have refused to do so for privately owned properties and will not provide details of the 2007 report to residents; if this matter has been previously raised with him, highlighting the disparity between public and privately owned homes in the estate; if, given the above, he will allow an exemption to be made to this estate for the tax in view of the serious fire and safety problems along with dangerous building materials and electrical problems that have culminated in fires claiming several people's lives since the estate was built in 1972 as temporary housing; and if he will make a statement on the matter. [54735/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by Bray Town Council that the estate in question was built in 1972 by Wicklow County Council, but not as temporary housing, and the houses were built to the standards of the day. A refurbishment programme was carried out in the late 1980s by Wicklow County Council. I understand that prior to 2007 there were a number of fatal fires in the estate but I am advised that none of the fires was attributable to electrical problems in the properties. Nonetheless, at the request of elected members of the council it was agreed to engage consultants to survey and report on the properties. Following a selection process from an independent interview board, consultants were selected to carry out a survey and report on fire safety of local authority houses in the estate. The survey involved a visual inspection of an agreed number of houses and an "opening up" survey of some houses. Details of the report were not released as it refers to specific properties. I am advised the report is the subject of an appeal under the Freedom of Information Acts.

The issues raised by the Deputy are primarily a matter for the local authority concerned and housing policy generally is a matter for my colleague, the Minister for the Environment, Community and Local Government. I can confirm that the estate in question has not been previously raised with me.

Issues relating to fire safety are not relevant in determining liability to the LPT. Accordingly, whilst homeowners or properties in this estate may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the legislation, there is no specific reduction in or exemption from LPT in the circumstances outlined. However, the condition of a residential property is relevant to its valuation for LPT purposes.