Written answers

Wednesday, 3 December 2014

Department of Finance

Property Taxation Rate

Photo of Alan FarrellAlan Farrell (Dublin North, Fine Gael)
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6. To ask the Minister for Finance his views on introducing additional legislation or a ministerial order on or before the revaluation date for the local property tax for the purposes of ensuring that Dublin and regional cities are not overly burdened with property tax in view of the prices in the capital and regional cities rising at a far higher rate than the 15% discount available to local authority members; and if he will make a statement on the matter. [45969/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As the Local Property Tax is a new tax, the Government wished to provide certainty to homeowners and for this reason valuation periods of three years were introduced (with the exception of the first valuation period which covers three and a half years). In addition to providing certainty, it also eases the administration burden on the homeowner by not having to revalue their houses each year.  

The regular revaluation periods ensure that the property register is maintained with accurate and up to date information to assist in evaluating the operation of LPT, as well as bringing newly built properties within the scope of LPT.  The Deputy may be aware that under the LPT legislation, where a property is not a "relevant residential property" on a valuation date (i.e. not liable to LPT), with certain exceptions, that property will not be a relevant residential property until the next valuation date. In the interests of equity to compliant LPT payers it is important to have regular valuation dates so that newly built properties are brought into the LPT net. It also provides certainty to those homeowners as to when they will become liable to LPT. 

The initial valuation of a property on 1 May 2013, assuming it was made in good faith, is valid from 1 May 2013 to 31 October 2016, and will not be affected by any increase or decrease in property prices or other changes, including repairs or improvements made, during this period. I also committed not to amend the central national rate of LPT for the lifetime of the Government.  

While I am very conscious of the concerns of homeowners over increasing property prices and the effects this will have on their LPT liabilities, particularly in urban areas, the next valuation date is not until 1 November 2016. In advance of that date, in conjunction with my officials, I will be examining the LPT and impacts on LPT liabilities due to increasing property prices.

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