Heather Humphreys (Cavan-Monaghan, Fine Gael)
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35. To ask the Minister for Finance the position regarding property tax liability for 2014 in respect of a case (details supplied); his plans to address this anomaly; and if he will make a statement on the matter. [4380/14]

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. For the year 2014, the liability date is 1 November.  I would draw the Deputies attention to the fact that the 1 November liability date has been raised and responded to on several occasions in the House previously and, as far back as 27 March last year, in a reply to Question No. 110, I specifically addressed the fact 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.  Furthermore, the LPT liability crystallises on the sale of a residential property and must be paid in full either in advance of the sale or must be deducted from the proceeds of the sale. This includes any LPT that has been deferred by the liable person. This is in accordance with section 126 of the Act.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 the LPT liability is likely to be factored in during negotiations between the parties on the sale price and the closing date of a particular contract.

In relation to the assertion that there is an anomaly created when a property is sold between 2 November 2013 and 31 December 2013, 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.As there are a number of LPT issues to be considered when buying or selling a house, I am advised that 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.The liability date for 2014 of 1 November 2013 is in the LPT legislation and I have no plans to change it.