Written answers

Thursday, 5 November 2015

Department of Environment, Community and Local Government

Property Tax Exemptions

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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22. To ask the Minister for Environment, Community and Local Government the status of his Department's investigations on MICA affected homes in County Donegal; if he supports an exemption from the Property Tax for all those affected; and if he will make a statement on the matter. [38223/15]

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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While I fully appreciate and acknowledge the extremely difficult and distressing situations that certain homeowners in Donegal are facing on account of damage to the structural integrity of their homes, in general, building defects are matters for resolution between the relevant contracting parties, i.e. the homeowner, the builder, the materials supplier and/or their respective insurers. In this regard, I believe that the parties responsible for poor workmanship and/or the supply of defective materials should face up to their responsibilities and take appropriate actions to provide remedies for the affected homeowners.

In the event that the contracting parties cannot reach a settlement by negotiation, the option of seeking redress in the Courts can be considered. In this context, my Department understands that legal proceedings have been instigated in a number of cases relating to this problem.

My Department has prepared a technical report for my information in this matter. This report was prepared following my visit, earlier this year, to a number of the affected homes to view first-hand the damage caused and had regard to test reports made available to my Department by a number of homeowners in order to provide a more detailed and scientific insight into the problems that have emerged. In this regard, the technical report is under consideration and I intend to complete my deliberations in this matter shortly.

Taxation policy, including issues relevant to the local property tax (LPT), is primarily a matter for the Minister for Finance. The legislation governing the administration of the LPT provides for only a limited number of exemptions from that tax. There is no specific exemption for properties affected by mica and I understand that there are no plans to introduce such an exemption. LPT operates on a self-assessment basis; it is a matter for the property owner, in the first instance, to calculate the tax due based on his or her assessment of the market value of the property. When making an assessment on the value of a property, issues such as the presence of mica should be taken into account by the property owner.

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