Michael McGrath (Cork South Central, Fianna Fail)
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44. To ask the Minister for Finance if the Revenue Commissioners have a system in place for paying a refund in respect of the local property tax in cases where it has been charged in error; the expected time for processing a refund; and if he will make a statement on the matter. [4759/14]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to the exemption in section 8 of the Finance (Local Property Tax) Act 2012 (as amended). It was originally intended that this exemption would only apply to first-time buyers, which is clear from the heading to the section: "Exemption for first-time buyers". The Explanatory Memorandum to the Bill (prior to enactment) also states that the exemption applies to first-time buyers. The Deputy may recall that mortgage interest relief was phased out on mortgages taken out after 31 December 2012 and this measure was a transitional provision to help first-time buyers in the first year after the abolition of mortgage interest relief. However, as written, the exemption benefits any buyer, not just a first-time buyer. The result is that a person who purchased a second hand house in 2013 and occupies it as a sole or main residence is entitled to the exemption regardless of whether s/he is a first-time buyer.

The Revenue Commissioners have advised me that this exemption applies to a clearly defined group of property owners, who are being identified using Stamp Duty records. These fall into three broad groups:

- those who purchased a residential property between 1 January 2013 and 1 May 2013 and paid the LPT for 2013 -  they may be entitled to a refund of the 2013 payment and subject to certain conditions may be exempt for 2014 to 2016 LPT,

- those who purchased a property between 1 May 2013 and 1 November the vendor was liable to the 2013 liability, if the purchaser paid the 2014 liability they may be entitled to a refund and may be entitled to an exemption for 2015 and 2016 LPT, and

- those who bought between 2 November and 31 December 2013 - the vendor once he or she owned the property on 1 May and 1 November is liable for the 2013 and 2014 liability and the purchaser may be entitled to an exemption for 2015 and 2016 LPT.

- There is a significant amount of work involved in identifying individuals who bought in 2013 and who are entitled to the exemption. When this work is completed Revenue will write to these individuals and will provide advice on what action should be taken where the individual confirms that s/he qualifies for the exemption and wishes to claim it, so that s/he may receive a refund of any LPT already paid for 2013 or 2014. Good progress is being made on identifying those that may be eligible and the letter from Revenue will clearly indicate what they need to do to claim the exemption. Once the exemption is properly claimed refunds will issue promptly to the claimants, subject to their tax affairs being up to date. 

There are other circumstances in which a refund of LPT may be considered. If the Deputy has a particular case or set of circumstances in mind, he may wish to contact the Revenue Commissioners with the details and they will advise him of the procedures to be followed.