The Finance (Local Property Tax) Act 2012 sets out how the tax is to be administered and how a residential property is to be valued for Local Property Tax (LPT) purposes.
I am advised by the Revenue Commissioners that LPT is a self-assessed 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. As property values for properties under €1 million are organised into valuation bands for the purposes of LPT, property owners will not be required to provide a precise value for their property.
I am further advised by the Commissioners that the initial valuation of a property on 1 May 2013, assuming it is made in good faith, will be valid up to and including 2016 and will not be affected by any increase or decrease in property prices, during this period. This will ensure a measure of certainty for all property owners.
The Revenue Commissioners have prepared valuation guidance which, taken together with the owner’s own knowledge of the property, will assist him or her in assessing its value. The guidance includes an on-line guide that provides indicative property valuation bands depending on the property type, age and location and is available on the Revenue website.
When using Revenue’s valuation guidance, property owners should consider the specifics of their own property and if they feel that the guidance is not indicating a reasonable valuation, they should make their own assessment. As I have previously advised the House, where the Revenue guidance is used in an honest manner, the property valuation made by a property owner will not be challenged by Revenue in accordance with its normal Customer Service Charter and, consequently, additional charges will not be applied.