Willie Penrose (Longford-Westmeath, Labour)
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292. To ask the Minister for Finance if he will ensure that a demand made in respect of a person (details supplied) in County Westmeath regarding the household charge in the sum of €200 is discontinued, in view of the fact that this person was not the owner of the house at the time charge arose in January 2012 to December 2012 period, that the person only took up residence in April 2014 and has already discharged any liability in respect of local property tax for 2015 and since it is clear that this charge has nothing at all to do with that person; and if he will make a statement on the matter. [12137/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that Section 127 of the Finance (Local Property Tax) Act 2012 (as amended) provides that any unpaid Local Property Tax (LPT) or Household Charge (HHC) liabilities attach as a charge against the particular residential property until the outstanding debt is paid.

Such a charge, including interest at a rate of 8% per annum remains on the property, even where there is a change of ownership, unless the debt is paid by either the vendor or the purchaser as part of the sale agreement.

As part of the conveyancing process and prior to the completion of a sale, the purchaser (or his/her solicitor) should be satisfied that all LPT and HHC liabilities are paid and that there are no amounts outstanding. The purchaser should also satisfy himself/herself that the LPT valuation declared by the vendor (as at 1 May 2013) appears accurate.

To facilitate this process, the vendor (or his/her solicitor) is obliged to provide the purchaser with details of the valuation of the property and the LPT/HHC liabilities paid. The required information can be accessed through an online system, which Revenue has developed to assist the sale process. In this regard the vendor can either provide the purchaser with online access to the LPT property records using secure identification codes or alternatively simply provide printed copies.

 Specifically in regard to HHC, the vendor should confirm payment to the purchaser by way of receipts or other appropriate documentation or, where the property is exempt provide a certificate of exemption or waiver. 

In the case to which the Deputy refers, it is acknowledged that the person in question purchased the property in 2014. However, there is no record that the outstanding HHC liability on the property was paid, either prior to, or as part of the sale and it seems that there was no agreement on the issue between the person's legal representative and the vendor. For that reason the amount due is recorded as a charge against the property.

Revenue has confirmed to me that the person made contact with the LPT team on foot of a compliance notification that issued to him on 21 February 2015. The LPT agent confirmed to the person that the liability is correctly due and that Revenue has no discretion in regard to the outstanding amount and must apply the law as set down in the legislation.