Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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23. To ask the Minister for Finance if consideration will be given to basing property tax on income for pensioners similar to the French system; and if he will make a statement on the matter. [42815/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The 2012 report of the Inter-departmental Group on the Design of a Local Property Tax (the "Thornhill Group") comprehensively examined the basis of assessment for the Local Property Tax (LPT). The report favoured the use of market value of residential properties as the basis of assessment and this recommendation was accepted by the Government. The Group considered that under a market value approach applied to housing, the market value of a residential property would be related to the characteristics of the building itself, the site on which it was located and the characteristics and amenities of the neighbourhood. There would be a relationship between the market value of a house and benefits to the owners in terms of enjoyment of the amenity value of the properties.

At the request of the Minister for Finance, the operation of the LPT was reviewed in 2015 by Dr. Thornhill. A number of submissions to the review favoured changing the basis of determination of LPT liabilities to site value, floor area or variations thereof. Dr. Thornhill considered these but remained of the view that market value is the most appropriate and equitable basis on which to determine LPT liabilities.

The Finance (Local Property Tax) Act 2012, as amended provides for a system of deferral and partial deferral arrangements in certain circumstances to assist individuals who may have difficulty paying the tax. Deferral/partial deferral is not an exemption and attaches as a charge on the property until the liability is paid. The deferral/partial deferral option also attracts an annual interest charge of 4%.

Where a liable person does not qualify for, or does not wish to avail of, a deferral, phased payment of LPT can be used to assist with budgeting. The Government is aware of the difficulties facing many individuals and families, and for this reason a wide variety of methods for payment of the LPT are available from which liable persons can choose the method most suited to their individual circumstances. The LPT can be paid by way of phased payments rather than in a single payment; it can also be paid by direct debit; or through payment service providers such as An Post TaxPay, Payzone and Omnivend.

Property owners who wish to avail of the deferral option or require clarification in regard to their particular circumstances should contact the LPT Helpline at 1890 200 255 to make the necessary arrangements.