Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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367. To ask the Minister for Finance whether any internal briefing notes, modelling papers or impact assessments were prepared within his Department or by Revenue regarding the effect of higher LPT valuations on homeownership affordability, mortgage applicants, or the private rental market, and if he will publish these documents. [64960/25]

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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376. To ask the Minister for Finance if his Department issued any direction or guidance to the Revenue Commissioners during the 2025 valuation exercise regarding the potential impact of rising valuations on owner-occupier affordability or small landlord viability. [64969/25]

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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380. To ask the Minister for Finance whether his Department conducted any regional or economic distributional analysis of households most at risk of financial strain from increased LPT valuations; and if so, to publish this analysis. [64973/25]

Simon Harris (Wicklow, Fine Gael)
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I propose to take Questions Nos. 367, 376 and 380 together.

The role of the Office of the Revenue Commissioners is to serve the community by fairly and efficiently collecting taxes and duties and implementing Customs controls. Revenue administer the taxation policy set by Government, which my Department has lead responsibility for.

In advance of revaluation this year, officials in Revenue’s Statistics Branch conducted an extensive modelling and valuation exercise in respect of LPT liable properties. The purpose of this work was to inform policy decisions and to assist with providing guidance to taxpayers on the valuation of their properties ahead of this November. Revenue collaborated with the Department of Finance in respect of various scenarios and their estimated impacts under the model. This collaboration allowed Department officials to prepare options for Minister Donohoe to consider in respect of revaluation, taking into account the Programme for Government commitment, the impact on property owners and the overall tax yield.

The changes to LPT that have been implemented will ensure that the majority of homeowners remain in the same valuation band and pay between €5-25 in extra LPT for 2026 onwards. This represents the first increase in LPT charges since the introduction of the tax in 2013. Accordingly, Government have agreed it is fair to ask property owners to pay a small amount more going forward, with the result of raising approximately €45 million of additional funding for local services. I do not expect this increase in LPT liabilities to significantly impact private rental supply, small landlords, or homeownership affordability.

A small number of properties will move up a band due to significant appreciation in value since 2021. It was not possible to ensure these properties would remain in their current band without consequentially causing many other properties to drop one or more bands. I believe that we have struck an appropriate balance with the charging mechanism for 2026-2030.

I acknowledge the Deputy's concern regarding this tax's impact on households experiencing financial hardship. While the tax has a limited number of exemptions, therefore ensuring the tax base remains broad, the LPT legislation provides for the possibility of deferring the charge to LPT in certain circumstances to assist individuals who may have difficulty paying the tax. A qualifying person may opt to defer, or partially defer, payment of the tax. Where a person qualifies for a full deferral, 100% of the liability can be deferred. Where a person qualifies for partial deferral, then 50% of the liability can be deferred. The balance of 50% of the tax must be paid. The deferred tax remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is charged at 3% per annum on the deferred amount.

It is also possible to apply for a deferral on the grounds of hardship if a person suffers an unexpected and unavoidable significant loss or expense, as a result of which a person cannot pay their LPT liability without suffering financial hardship. Further information regarding the deferral of LPT is available on the Revenue website at: www.revenue.ie/en/property/local-property-tax/deferral-of-payment/index.aspx.

Following the enactment of the Finance (Local Property Tax and Other Provisions) (Amendment) Act 2025 this July, the income thresholds for deferral of LPT for the upcoming valuation period have increased by between 30% and 40% depending on personal circumstances. This ensures that deferral remains an option for households at greater risk of financial hardship.

Any property owners experiencing financial difficulties can avail of a wide range of flexible payment options both in respect of their LPT liabilities and for any previous years where liabilities remain outstanding. The full range of payment options, which includes phased arrangements, are available to property owners on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx.

Finally, property owners experiencing difficulties in meeting their LPT obligations can contact Revenue through MyAccount at www.revenue.ie or by calling the LPT helpline at (01) 7383626 from Monday to Friday, 09.30 to 16.30.

A paper detailing the modelling and valuation exercise by the Revenue Commissioners has already been published. A link to this paper was shared with the Deputy through parliamentary question responses 370 and 371 on 12 November 2025. Furthermore, a detailed report will be available once a comprehensive analysis of the LPT returns filed for the valuation period 2026-2030 is completed.