Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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228. To ask the Minister for Finance the reason the sale price of a property (details supplied) is not acceptable to the Revenue Commissioners as the valuation for property tax. [2213/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that the Finance (Local Property Tax) Act 2012 (as amended) sets out how residential properties are to be valued for LPT purposes.

The Act provides that property valuations must be determined on a specific valuation date and Section 14(1) further provides that where there is a change of ownership between consecutive valuation dates, the chargeable value, as stated on the first valuation date, will continue to apply until the next valuation date.

The first valuation date for LPT was 1 May 2013 and any valuation of a property set on that date is valid until 31 October 2016. The valuation is not affected by any repairs or improvements made to a property or by any general increase or decrease in property prices that might occur during the valuation period.

In regard to property sales, all purchasers of relevant residential properties, as part of the conveyancing process and prior to the completion of a sale, should satisfy themselves as to whether the LPT valuation declared by the vendor on the specific valuation date appears reasonable and honestly made (having obtained all relevant supporting documentation from the vendor). To facilitate this process, the vendor is obliged to provide the purchaser or the purchaser's solicitor with details of the Property ID, the valuation band as declared on the LPT Return and the basis for arriving at that valuation. Any concerns regarding the original valuation should be addressed at this point before ownership of the property is transferred.

Section 35(5) of the Act does however provide for the submission of a revised LPT Return in advance of the next valuation date where specific information or documentation supporting such a change comes to hand, or where the purchaser feels that the original valuation (by the vendor) could not have been reasonably arrived at. Supporting documentation in this regard could include a copy of a professional valuation or documented information on property sales for comparable properties in the local area. The supporting documentation must be relevant to the valuation date (1 May 2013) rather than to current property values.

With regard to the specific case to which the Deputy refers, I am advised that the original owner (the vendor) filed a 2013 LPT return confirming the property in Band 3 (€150,001-€200,000). The purchaser subsequently contacted LPT Branch requesting that she be allowed to pay the 2015 liability in Band 2 (€100,001-€150,000) but did not provide any documentation or evidence supporting the validity of such a reduction. The LPT team explained to the person that she would need to produce appropriate documentary evidence supporting her request for a reduction before Revenue could adjust the Valuation Band. The LPT team also advised the person that any uncertainty about the current valuation should have been addressed with the vendor before the sale of the property was finalised, but that she will have an opportunity to submit a revised valuation for the property on 1 November 2016.

Finally, Revenue has confirmed to me that it will re-examine the issue if the person produces documentation supporting her assertion that the property is more relevant to Band 2 than Band 3 but has no discretion to do so in the absence of such evidence.