Clare Daly (Dublin North, Socialist Party)
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217. To ask the Minister for Finance his views on a matter relating to pyrite and the property tax (details supplied). [8212/14]

Michael Noonan (Limerick City, Fine Gael)
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Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a temporary exemption of at least three consecutive years (generally the exemption period will be for between three and five years and is linked to the three year valuation period) from the charge to Local Property Tax (LPT) for residential properties that have been certified under Regulations made by the Minister for the Environment, Community and Local Government (S.I. No. 147 of 2013) as having "significant pyritic damage". These Regulations describe the methodology that must be used when a property is being assessed for pyrite damage. The assessing and testing procedures that must be carried out are highly technical and specialised and have to be carried out by an appropriately competent person such as an engineer or a geologist.

The LPT exemption does not apply until such time as the property has been assessed and a certificate confirming "significant pyritic damage" has been issued. This is the only type of certificate that is relevant and a homeowner cannot claim the exemption until it has been issued. This means that, in the absence of the relevant certificate, LPT must be paid up front or by means of one of the approved phased payment arrangements.

Special arrangements apply in respect of the years 2013 and 2014 to facilitate homeowners who do not have the relevant certificate on the first liability date of 1 May 2013 (liability date for 2013), or by 1 November 2013 (liability date for 2014). While they are required to pay LPT for those periods, they may reclaim the tax paid if they obtained the certificate by 31 December 2013 and notified the Revenue Commissioners in writing by 31 January 2014. Such retrospective treatment only applies in relation to the years 2013 and 2014. The standard procedure is for homeowners to start the period of exemption from the liability date following the issue of the certificate. For example, a homeowner who has the relevant certificate on 1 November 2014 (liability date for 2015) can claim the exemption for the five year period of 2015 to 2019 but cannot reclaim LPT paid for any year prior to 2015.

The rules governing when, and for how long, the exemption applies are complicated and are best explained by the use of examples. I am advised that detailed information and examples on how the exemption for residential properties with significant pyrite damage operates are provided by the Department of Environment, Community and Local Government, on www.environ.ie, and by the Revenue Commissioners in the LPT section of their website, www.revenue.ie.