Joan Burton (Dublin West, Labour)
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196. To ask the Minister for Finance his plans to review the property tax, in view of the impact of the increase in property values on the LPT; if he considered varying the rates to balance the impact of higher property values; if these issues will be addressed in the proposed three year budget; and if he will make a statement on the matter. [38608/17]

Michael McGrath (Cork South Central, Fianna Fail)
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244. To ask the Minister for Finance his plans to reimburse persons for private property valuations with a decrease in property tax in view of the fact that property valuations have increased nationally; and if he will make a statement on the matter. [39024/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 196 and 244 together.

The Department of Finance engaged Dr. Don Thornhill in 2015 to conduct a review to consider and make recommendations on the operation of the Local Property Tax, in particular any impacts on LPT liabilities due to property price developments.

Dr. Thornhill made a number of recommendations in his report on his review of the Local Property Tax. His central recommendation was for a revised system whereby a minimum level of LPT revenues in each local authority area would be determined by Government, ideally having regard to the apportionment between local authority areas of the historic yield. This in turn would allow for the estimation of LPT rates for each local authority area and the application of these by taxpayers and Revenue. Local authorities could adjust this rate upwards by a factor of up to 15%. This new system was recommended by Dr. Thornhill with a possible interim deferral of the next valuation date until November 2018 or November 2019.

The Minister for Finance subsequently proposed to Government that the revaluation date for the LPT be postponed from 2016 to 2019. This postponement meant that home owners were not faced with significant increases in their LPT in 2017 as a result of increased property values.  The postponement also gives sufficient time for the other recommendations in Dr. Thornhill's report to be considered fully by the Government and there are no proposals to change this.

The Finance (Local Property Tax) (Amendment) Act 2015 gave effect to the postponement of the revaluation date of residential property for LPT purposes, and also to two of the recommendations in Dr. Thornhill's report, involving LPT relief for properties affected by pyrite and relief for properties occupied by persons with disabilities. 

My Department will be considering issues relating to the implementation of other recommendations in the Thornhill Report in due course in line with the 2019 timeline.