Finian McGrath
Question:67. Deputy Finian McGrath asked the Minister for Finance the main changes in the property tax in relation to the unemployed, senior citizens and the disabled, exemptions, waivers and so on. [9313/13]
View answerThursday, 21 February 2013
Questions (67)
Written answers
I assume the Deputy is referring to the Finance (Local Property Tax) (Amendment) Bill 2013 which I announced to the House last week. Certain provisions included in the Bill may apply to individuals who are unemployed, senior citizens or disabled. It should be noted that the changes to which I refer are subject to the enactment of the Bill. An exemption from the charge to Local Property Tax (LPT) will apply to a residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individuals as their sole or main residence, where an award has been made by the Personal Injuries Assessment Board or a court or where a trust has been established specifically for the benefit of such individuals. In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. The exemption ends if the property is sold and the incapacitated individual no longer occupies it as his or her sole or main residence.
In addition, the Bill also provides for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided by a local authority. The reduction is limited to the lesser of the market value attributable to the adaptation work carried out on the property and the maximum grant payable under the relevant local authority scheme. The relief ends on the sale or transfer of a property that has been adapted, unless the person with the disability continues to reside in the property.
Furthermore, residential properties that have been certified as having significant pyritic damage will be exempt from LPT for a temporary period of approximately three years. Regulations will be made by the Minister for the Environment, Community and Local Government stipulating how properties are to be tested to establish whether they have been affected by a significant level of pyrite-induced damage and providing for the issue of certificates by a competent person where this has been established.
The Finance (Local Property Tax) Act 2012 already contains a number of specific deferral provisions that cater for cases of low income and significant mortgage interest burden. However, I appreciate that these may not cater sufficiently for some specific situations and, in the Amendment Bill, I am proposing additional categories of property owners that may qualify for a deferral of the local property tax payable. These include the personal representatives of a deceased liable person and an individual who enters into an insolvency arrangement under the Personal Insolvency Act 2012.
A further provision will allows for a measure of discretion by the Revenue Commissioners to grant a full or partial deferral in very particular circumstances where a person suffers both an unexpected and unavoidable significant financial loss or expense, as a result of which he or she is unable to pay the LPT without causing excessive financial hardship. Claims for this type of deferral will require full disclosure of the person’s financial circumstances, supporting documentation and any other information required by Revenue.