Charlie McConalogue (Donegal, Fianna Fail)
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132. To ask the Minister for Finance if approved housing bodies are allowed to charge local property tax to their tenants; his plans to waiver the charge for approved housing bodies; and if he will make a statement on the matter. [28125/16]

Michael Noonan (Limerick City, Fine Gael)
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Section 11 of the Finance (Local Property Tax) Act 2012, provides that Approved Housing Bodies are liable to pay LPT in the same manner as any other residential property owner.

The exception in this regard is where the Approved Housing Body operates as a charity, is availing of the Charitable Tax Exemption as provided for by Sections 207 and 208 of the 1997 Taxes Consolidation Act and uses the particular property to accommodate people with special housing needs. Special housing needs in this context could include the elderly, people with disabilities or victims of domestic violence.

Where a property owned by an Approved Housing Body is not exempt from LPT, Section 17 (6) of the Act provides that the lowest Valuation Band (€0 to €100,000) applies. This gives rise to an annual liability of €90, subject to any 'local adjustment factor' to the LPT basic rate by the relevant Local Authority. It is a matter for the individual Body to decide whether it will pass on this liability to the tenant or absorb it.

The Deputy will be aware that I commissioned a review of LPT in 2015, which was chaired by Dr Don Thornhill. While Dr Thornhill made a number of recommendations, some of which have already been implemented, he made no reference to the application of the tax in respect of Approved Housing Bodies. On that basis I have no plans at this time to introduce any type of waiver system for such properties.