Clare Daly (Dublin North, United Left)
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14. To ask the Minister for Finance his views on the logic of a homeowner with pyrite having to spend thousands of euro to have a test conducted to prove the presence of pyrite in their home in order to claim an exemption from the property tax, which would not even cover the cost of the test; his views regarding the need to have the statutory instrument amended accordingly so that the spirit of the legislation may be properly accommodated and homeowners with pyrite may be exempted from the local property tax as intended. [37016/14]

Michael Noonan (Limerick City, Fine Gael)
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The Pyrite Panel appointed by the Minister for the Environment, Community & Local Government recommended that consideration be given to providing an exemption from LPT where damage from pyritic heave had been proven by testing in accordance with a National Standards Authority of Ireland (NSAI) standard capable of determining if there was reactive pyrite in the sub-floor hard core materials, and if it had caused pyritic heave.  I.S. 398 titled "Reactive pyrite in sub-floor hardcore material Part 1: Testing and categorisation protocol" was published on 29 January 2013 by the NSAI in response to the Panel's recommendation.

Accordingly, section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides that an exemption from the charge to Local Property Tax (LPT) will apply for a temporary period of at least three consecutive years for residential properties that have been certified under the Finance (Local Property Tax) (Pyrite Exemption) Regulations 2013 made by the Minister for the Environment, Community & Local Government as having "significant pyritic damage".  The Regulations set out the methodology for the assessment of dwellings to establish significant pyritic damage. These Regulations require that homeowners demonstrate significant pyritic damage in accordance with the NSAI standard I.S. 398.

To be eligible for an exemption from LPT, a liable person must

- have a Damage Condition Rating of 2 or a Damage Condition Rating of 1 with progression, established on foot of a Building Condition Assessment ("BCA") carried out by a competent person in accordance with the NSAI standard, and

- have a sub-floor hard core material classified by the appropriate competent person(s), as susceptible to significant or limited expansion, established on foot of testing the sub-floor hard core material.

The purpose of the Building Condition Assessment is to demonstrate damage and to inform whether sampling and testing of the sub-floor hardcore of the residential property should be undertaken in order to confirm that such damage arises from pyrite.  The Building Condition Assessment does not involve any invasive internal or external inspections to a residential property and, on its own, cannot be used to state conclusively that reactive pyrite is present in the sub-floor hardcore of the property.

Officials of my Department, with officials of the Department of Environment, Community & Local Government, have been examining the alternatives other than testing that may be available in order to confirm entitlement to a Local Property Tax exemption. I expect to make a decision in the matter shortly that will be consistent with the original objectives of the legislation and the report of the Pyrite Panel and I will communicate my decision to the Deputy immediately it is made. I thank her for bringing this matter to attention.