Brendan Ryan (Dublin North, Labour)
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224. To ask the Minister for Finance if he will provide assurances that homeowners currently living in pyrite damaged homes and who are in the process of, or awaiting to be processed for, remediation through the Pyrite Remediation Board, are entitled to have their local property tax waived, in line with existing legislation, without having to produce a certificate for the laboratory testing of the sub-floor hardcore material which can cost upwards of €2,000; and if he will make a statement on the matter. [46287/14]

Michael Noonan (Limerick City, Fine Gael)
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The exemption from Local Property Tax (LPT) based on "significant pyritic damage" has been dealt with in a number of Parliamentary Questions this year, including Questions No. 217 on 18/2/14 (8212/14), No. 121 on 30/4/14 (19698/14), No. 43 on 19/6/14 (26462/14) and No. 14 on 2/10/14  (37016/14).

Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a temporary exemption of at least three consecutive years 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.

Unless and until the LPT legislation is changed, Revenue has an obligation to act in accordance with section 10A of the LPT legislation which requires that an LPT exemption can only apply where the residential 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.

I am also advised by the Revenue Commissioners that the letter referred to by the Deputy was issued by Revenue in response to an email from the customer requesting clarification on the qualifying conditions for the exemption. The letter clarified that the exemption can only be claimed for the property where the owner has received the relevant certificate confirming "significant pyritic damage" from a competent person such as an engineer. Similar replies have issued to other customers who were querying the qualifying conditions for this exemption.

I confirm that I am aware of the anomaly to which the Deputy refers, and that officials of my Department, together with officials of the Department of Environment, Community and Local Government, are examining the alternatives other than testing that may be available in order to confirm entitlement to a Local Property Tax (LPT) exemption.  I am conscious that the issue to which the Deputy refers needs to be addressed and I want to assure the Deputy, and those homeowners affected, that this issue is receiving attention. 

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.

It is important that any changes that may be made do not go beyond the objectives of providing a temporary exemption for homes with "significant pyritic damage" only. As I have advised on many occasions in the past, a liability to LPT should apply to all owners of residential property with a limited number of exemptions.  Limiting the exemptions available allows the rate of the tax to be kept low for those liable persons who do not qualify for an exemption.