Catherine Martin (Dublin Rathdown, Green Party)
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132. To ask the Minister for Finance his plans to provide relief for local property tax for older persons in areas in which land prices have increased significantly; and if he will make a statement on the matter. [50565/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government agreed with the recommendation of the 2012 inter-Departmental Group chaired by Dr. Don Thornhill which considered the structures and modalities of a property tax that a universal liability to the LPT should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. There is no specific exemption from the requirement to pay LPT for pensioners or older persons under the Finance (Local Property Tax) Act 2012 (as amended), though such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.

The Inter-departmental Group considered the provision of deferrals for households unable to pay the tax or where a payment requirement would cause hardship. Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) accordingly provides for a system of deferral arrangements for owner-occupiers where there is an inability to pay the tax and the person meets certain criteria based on income thresholds. These deferral arrangements also take account of mortgage interest payments made by the property owner.

The property must be the sole or main residence of the liable person and his or her gross income must be below certain thresholds. The thresholds are €15,000 for a single person and €25,000 for a married couple, civil partners or cohabiting couple. Deferral in respect of half of the local property tax payable is possible, where the gross income is above the threshold but less than €25,000 in the case of a single person and €35,000 in the case of a couple.

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.

A review of the LPT is currently being finalised that is looking in particular at the impact on LPT liabilities of property price developments. It includes an examination of the outstanding recommendations of the 2015 Thornhill review of the Local Property Tax. The review is informed by the desirability of achieving relative stability, both over the short and longer terms, in LPT payments of liable persons.