Written answers

Thursday, 13 March 2014

Department of Finance

Property Taxation Exemptions

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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53. To ask the Minister for Finance his views on correspondence (details supplied) regarding financial pressure. [12602/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Government agreed with the recommendation of the Thornhill Group (the inter-Departmental Group, chaired by Dr Don Thornhill, which considered the structures and modalities of a property tax) that a universal liability to the Local Property Tax (LPT) should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. There is no specific exemption from the requirement to pay LPT for pensioners under the Finance (Local Property Tax) Act 2012 (as amended), though such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.   

The Thornhill Group considered the provision of waivers or deferrals for households unable to pay the tax or where a payment requirement would cause hardship. As a general principle, eligibility for deferral should be based on gross income. The system of deferrals in place is targeted at cases of need, where there is an inability to pay the local property tax under specific conditions.  I have specifically provided in Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) for a system of deferral arrangements for owner-occupiers where there is an inability to pay the tax and the person meets certain criteria based on income thresholds.  These deferral arrangements also take account of mortgage interest payments made by the property owner.  

I am informed by the Revenue Commissioners that a person whose only income is a DSP payment will qualify for a deferral of LPT.  However, if a person has income in addition to any DSP payment, they will qualify for deferral if their gross annual income is less than €15,000 for a single person or €25,000 for a couple. They would qualify to defer 50% of their LPT charge where their gross annual income is less than €25,000 for a single person or €35,000 for a couple and the remaining 50% of the tax must be paid. Where the property was purchased with a mortgage, these income thresholds are increased by 80% of the gross mortgage interest payments.  Specific examples of how the deferral arrangements work are provided on the Revenue website at .  

For those who qualify for deferral but do not wish to defer their payment, or those who do not qualify for deferral because they do not meet the necessary criteria, Revenue has provided a wide range of payment options which enables property owners to select a payment option that suits their particular circumstances. Options include spreading payments over the course of the year by deduction at source from their DSP payment, by monthly direct debits through certain credit union accounts or their bank account or, by making regular weekly or monthly payments to one of the three payment service providers which are An Post, Payzone and Omnivend. Details of the costs payable to the three service providers are set out on the Revenue website at.  

I am advised that further information on deferral of LPT as well as details of other payment methods are available by calling the LPT helpline on 1890 200 255.

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