Clare Daly (Dublin Fingal, Independent)
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90. To ask the Minister for Finance his plans to amend the local property tax and enable those on low incomes avail of a waiver. [11996/16]

Michael Noonan (Limerick City, Fine Gael)
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The 2012 report of the interdepartmental group (chaired by Dr Don Thornhill) on the design of a Local Property Tax (LPT) considered the issue of introducing an exemption or waiver for those below a certain income threshold. However, the report concluded that income related waivers are an inefficient and costly method of targeting relief as they run the risk of creating inequities between property owners in broadly comparable financial situations. As noted in the group's report, there would also be substantial administrative difficulties in determining exactly which categories of property owners should qualify for an income based exemption or waiver.

Instead it was decided to implement a system of deferral of LPT for persons below a certain income threshold and also for those who have experienced financial hardship or personal insolvency. 

There are number of criteria that must be met in order to qualify for an income related deferral but in the main the income of the individual must be below €15,000 for a full deferral and below €25,000 for a partial deferral (€25,000 and €35,000 thresholds apply for couples). It should be noted that the deferral option attaches as a charge on the property until paid and also carries an annual interest charge of 4%. I am advised by the Revenue Commissioners that approximately 29,000 property owners availed of this deferral in respect of 2015 liabilities.

The thresholds applicable for the income deferral were recommended by the Thornhill interdepartmental group report based on analysis by the ESRI. These were considered appropriate, having regard to potential impacts on households and to the need for balance and equity in terms of the burden thereby imposed on those with higher (but still average or below average) incomes and the levels of social welfare payments.

In his 2015 Report on his review of the LPT Dr Thornhill recommended that the deferral provisions be continued and reviewed in line with changes in the Consumer Price Index (CPI). My Department will be considering issues relating to the implementation of this and other recommendations in the 2015 Report in due course.