Brendan Griffin (Kerry South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

76. To ask the Minister for Finance if he will introduce concessions on the local property tax for pensioners who are in receipt of the household benefits package; and if he will make a statement on the matter. [25165/14]

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

The Government decided that a liability to the Local Property Tax (LPT) should apply to all owners of residential properties 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 concession available under the Finance (Local Property Tax) Act 2012 (as amended) for pensioners who are in receipt of the household benefits package. However such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.

The provision of waivers or deferrals for households unable to pay the tax or where a payment requirement would cause hardship was considered. 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 LPT under specific conditions. 

The property must be the sole or main residence of the liable person and his or her gross income must be below certain thresholds.  The thresholds are €15,000 for a single person and €25,000 for a married couple, civil partners or cohabiting couple.  Deferral in respect of half of the local property tax payable is possible, where the gross income is above the threshold but less than €25,000 in the case of a single person and €35,000 in the case of a couple.  

The full and partial deferral thresholds may be increased in the case of properties occupied as a sole residence and subject to a mortgage. In such cases, the gross income thresholds may be increased by 80% of the mortgage interest payments. The deferral option in such qualifying cases will apply until the end of 2017.

The LPT legislation also provides for the possibility of a deferral for liable persons who cannot without excessive hardship pay local property tax when it becomes payable as a consequence of a significant and unexpected financial loss or expense. Further information on this deferral option, including Revenue Guidelines, is available from: 

Deferred Local Property Tax and interest will have to be discharged on the sale/transfer of the property.   

While I have no plans to introduce specific concessions for pensioners who are in receipt of the household benefits package, owner/occupiers whose sole source of income is a state pension should qualify for a deferral.