Michael Healy-Rae (Kerry South, Independent)
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124. To ask the Minister for Finance if he will ease the burden of the property tax levy (details supplied) by putting a ceiling on it for several years; and if he will make a statement on the matter. [1047/15]

Michael 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 Deputies 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 equitable treatment of 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.