Dáil Éireann Debate, Thursday - 21 February 2013
73. Deputy Dominic Hannigan asked the Minister for Finance if there is any way that a householder whose home was fully compliant with building regulations when they bought it but has since been declared non-compliant, due to the fault at the build stage may not pay the local property tax until the building is fully complaint with building regulations again; and if he will make a statement on the matter. [9351/13]
View answerThe primary piece of legislation governing Local Property Tax (LPT) is contained in the Finance (Local Property Tax) Act 2012 which was enacted on 26 December 2012. The legislation sets out in detail how the tax is to be administered and provides how a residential property is to be valued for LPT purposes. I am advised by the Revenue Commissioners that Local Property Tax (LPT) is a self-assessment tax so in the first instance it is a matter for the property owner to calculate the tax due based on his or her assessment of the market value of the property. It will be a matter for the property owner to decide whether non-compliance with building regulations has a material impact on the value of the property, and if so, to what extent.
The Revenue Commissioners are preparing valuation guidance which, together with a liable person’s own knowledge of their property, will assist them in choosing the correct value band for their property. One of the advantages of the banding system of values provided for in the legislation is to remove the need for precision in relation to the market value, except for properties worth over €1million. Where these guidelines are used honestly the property valuation will not be challenged by Revenue in accordance with their normal Customer Service Charter.
Where a property is non compliant with building regulations due to pyrite-induced damage, the Finance (Local Property Tax) (Amendment) Bill 2013, when enacted, will provide that 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.
