Mary Lou McDonald (Dublin Central, Sinn Fein)
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195. To ask the Minister for Finance the reason the Revenue Commissioners reports a 95% compliance rate for payment of the property tax for the year 2014, in view of the fact that the Revenue Commissioners collect payment from source. [3411/15]

Mary Lou McDonald (Dublin Central, Sinn Fein)
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196. To ask the Minister for Finance if some residential properties are exempt from payment of the property tax; and if so, the types of properties. [3412/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 195 and 196 together.

The Revenue Commissioners have confirmed that the payment compliance rate for 2014 Local Property Tax (LPT) is approximately 95% at present.This includes applying mandatory deduction at source from salary or occupational pensions in relation to about 40,000 properties.  

I am advised that those property owners who have been subject to mandatory deduction at source are still obliged to submit their LPT Return including their self-assessment of LPT due in respect of their residential property.Any property owner who has yet to comply with these obligations should do so as soon as possible in order to avoid paying interest on any outstanding tax or possibly being selected for a Revenue audit which may give rise to additional tax, interest and penalties being charged.

Regarding exemptions from the tax, the Finance (Local Property Tax) Act 2012 (as amended) defines a residential property as any building or structure (or part of a building) which is used as, or is suitable for use as, a dwelling. Part 2 of the LPT Act outlines the LPT exemptions that are available. A broad outline of exempt properties includes:

- New and previously unused properties that are purchased from a builder or developer between 1 January 2013 and 31 October 2016;

- Properties purchased between 1 January 2013 and 31 December 2013, if occupied as the sole or main residence of the purchaser;

- Residential properties constructed by a builder or developer that remain unsold and have not been used as dwellings;

- Properties in unfinished housing estates as prescribed by the Minister for the Environment, Community and Local Government;

- Properties certified as having significant pyritic damage;

- Registered nursing homes;

- Unoccupied properties which had been the sole or main residence of a person who has vacated the property because of long term mental or physical infirmity;

- Properties occupied by permanently and totally incapacitated individuals as their sole or main residence;

- Residential properties owned by a charity or public body and used to provide "special needs accommodation";

- Properties used by a charity in connection with recreational activities;

- Properties fully subject to commercial rates;

- Diplomatic properties exempt under other legislation.

I am advised by the Commissioners that details of these exemptions were also provided on page 10 of the Guide to LPT, which was issued to all property owners in March/April 2013. The Deputy may also find the following () from the Revenue website helpful as it provides additional details of the various exemptions from the tax.

As regards liability for payment of the tax, the Commissioners have also confirmed that where a property has not reached the stage of construction where it is suitable for use as a dwelling until after 1 May 2013, it is outside the scope of LPT for the first valuation period of 1 May 2013 to 31 October 2016. Accordingly, the owner would not be liable to pay LPT on the property until 2017. I am further advised that a property that was not liable to LPT on 1 May 2013 on the basis that it was uninhabitable will not be liable to LPT for the years 2013 to 2016. If such a property were to be refurbished to make it suitable for use as a dwelling by 1 November 2016 then it will be liable to LPT for 2017 and subsequent years.