Dáil Éireann Debate, Tuesday - 18 December 2012
166. Deputy Dara Calleary asked the Minister for Finance the way he proposes to place an indicative value on homes under the property tax measure in view of the fact that three and four bedroom homes in counties Donegal and Mayo are being sold at auction this year for less than €30,000; his views on whether the property tax agenda is flawed at this time; and if he will make a statement on the matter. [56742/12]
View answerThe Local Property Tax will be a self-assessed tax based on the market value of a residential property. There will be a system of market value taxable bands with the initial band covering €0-€100,000 and bands of €50,000 width up to €1,000,000 in value. The tax liability will be calculated by applying the tax rate of 0.18% to the mid-point of the band. Properties valued over €1m will be liable to tax at 0.18% on the first €1 m in value and at 0.25% on any balance over €1 m, with no banding applied.
Revenue will provide guidance on how to value property early next year, and will engage in a comprehensive information campaign, including writing to residential property owners in March 2013 enclosing a detailed explanatory booklet on the operation of LPT, valuation procedures and payments methods, as well as an LPT Return form for completion. The initial valuation of property, to be assessed as on 1 May 2013, will be valid up to and including 2016. This will provide certainty for taxpayers. If liable persons follow Revenue's guidance honestly, Revenue will accept the property value assessment. Liable persons will find guidance in the register of residential property sales, published by the Property Services Regulatory Authority (PSRA) based on Revenue Stamp Duty data (www.propertypriceregister.ie) of assistance for valuing property.
Properties at the value mentioned by the Deputy will be liable to a Local Property Tax of €45 in 2013, when a half year charge will apply. This is €55 less than the Household Charge payable in 2012.
