Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for an exemption for three consecutive liability periods from the Local Property Tax (LPT) for residential properties that have been certified as having “significant pyritic damage”. This is in line with the relevant recommendation in the report of the independent Pyrite Panel. The methodology for the assessment of dwellings to establish significant pyritic damage will be prescribed in regulations which are currently in preparation and will be finalised shortly.
The primary route for homeowners to demonstrate significant pyritic damage will be in accordance with the recently published standard by the National Standards Authority of Ireland, IS 398 – Reactive Pyrite in sub-floor hardcore material – Part 1. This standard provides guidance on the visual condition assessment, sampling regime and testing to be carried out to establish the presence of significant pyritic damage. The standard must be used for all assessments and testing undertaken on or after 29 January 2013.
Where testing has been carried out prior to the publication of the above standard, it is possible that it may meet the requirements of the standard; however, there may be a requirement for some additional testing or interpretation of the test results by a geologist. In addition to assessing the test results, a visual condition assessment will also be required to be carried out by an engineer or other competent professional to confirm significant pyritic damage.
To claim an exemption a homeowner must obtain a certificate, from a competent person, confirming the presence of significant pyritic damage on the liability date. The certificate will confirm that a visual assessment and relevant testing of hardcore material has been undertaken. Where a certificate confirming significant pyritic damage has issued in respect of a property on or before a liability date, that property will be deemed to be exempt from the LPT for a period of three consecutive liability periods.
Special arrangements will apply in respect of 2013 and 2014 to facilitate homeowners getting relevant certification to claim an exemption. While homeowners who do not have the relevant certification on the first liability date of 1 May in respect of 2013, or by 1 November 2013 (liability date for 2014), will have to pay LPT for those periods, they will be able to reclaim the tax paid if they have a relevant certificate by 31 December 2013 and notify the Revenue Commissioners in writing on or before 31 January 2014. Additionally, homeowners will have the option to choose whether to designate 2013 or 2014 as the first of three consecutive liability periods for exemption if they get a relevant certificate before 31 December 2013 and make an election to the Revenue Commissioners specifying one of those dates on or before 31 January 2014.
While I am conscious that the certification process necessary to confirm significant pyritic damage may appear onerous for the homeowner, it is, however, necessary having regard to the multifaceted nature of the pyrite problem. In this context, it should be noted that the Pyrite Panel alluded to the unpredictability of pyrite within an estate with even adjacent dwellings reacting differently, one showing damage and the other displaying no damage. This may arise due to different builders operating in an estate and/or as a result of multiple sources for the sub-floor hardcore material used. The Panel noted that not all dwellings in an estate where pyrite problems have been identified will manifest pyritic damage.
