Dáil Éireann Debate, Tuesday - 16 April 2013
198. Deputy Martin Heydon asked the Minister for Finance the reason there is a €1 charge per instalment for those who want to pay the property tax in instalments in An Post; and if he will make a statement on the matter. [16210/13]
View answer213. Deputy Michael Healy-Rae asked the Minister for Finance the reason a levy is being placed on property owners who are paying their property charges on a weekly basis and who have to pay €52 on top of the original charge; and if he will make a statement on the matter. [17678/13]
View answer234. Deputy Róisín Shortall asked the Minister for Finance if he will set out the detail and payment structure with regard to the payment of the local property tax by way of equal instalments; specifically if he will provide dates on which payments will be deducted and details of the amounts that will be deducted according to each valuation band; and if additional fees and charges will be levied on this charge as a result of property owners opting for this method of payment. [16216/13]
View answer320. Deputy Anthony Lawlor asked the Minister for Finance his views on whether it is fair that an individual who, due to budgetary constraints, opts to pay the local property tax on a weekly basis through a cash payment in the post office is faced with a €52 service provider charge per annum as a result of the €1 service charge per transaction imposed by An Post; the way in which this annual service charge be justified in view of the fact that An Post is a semi State body and the other two private operators accepting payments are charging substantially less; and if he will make a statement on the matter. [17170/13]
View answer359. Deputy Barry Cowen asked the Minister for Finance the charging mechanism and administrative costs of paying the property tax via instalments; and if he will make a statement on the matter. [17680/13]
View answer360. Deputy Barry Cowen asked the Minister for Finance the reoccurring administrative charges in any property tax payment methods; and if he will make a statement on the matter. [17681/13]
View answerI propose to take Questions Nos. 198, 213, 234, 320, 359 and 360 together.
Section 119 of the Finance (Local Property Tax) Act 2012 (as amended) provides that the Local Property Tax (LPT) for 2013 is not payable until 1 July 2013. The legislation also provides that property owners may choose to pay the tax for the current year in equal instalments over the period from 1 July 2013 to the end of December 2013. The three phased payment options are deduction at source, direct debit, and payment by cash, credit or debit card through one of the approved payment service providers. The Revenue Commissioners advise that where a phased payment option is chosen, there is no additional administration or interest charge imposed by Revenue. However, a transaction fee may be charged by financial institutions and by the service providers.
Instalment payments can be made by way of deduction at source from employment, occupational pension income or from certain payments made by the Departments of Social Protection and Agriculture, Food and the Marine. The frequency of LPT deductions will depend on the frequency of salary or other payments made to the property owner by their employer, pension provider or Government Department. There are no fees or charges associated with the deduction at source option. Monthly phased payments can also be made by way of direct debit from the property owner's current account in a bank and other financial institution including a credit union. In these cases, the direct debit deductions will commence on 15 July 2013 and will be deducted on the 15th day of each month thereafter up to 15 December 2013. Normal direct debit fees charged by financial institutions apply to these payments. Phased payments can also be made either in cash or by debit or credit card through one of the three approved payment service providers, which are An Post TaxPay, Payzone and Omnivend. The appointed service providers have extensive nationwide outlets. Payment of LPT can be made in full through these service providers or by phased payments on a weekly or monthly basis. Charges are imposed by payment service providers on a per transaction basis. I am advised that An Post levies a charge of €1 per transaction, while Omnivend charges a fee of 4% per transaction. I understand that Payzone will be introducing the following charges this week: 75 cent per transaction for payments up to €50, €1 per transaction for payments between €50.01 and €100 and €2 per transaction for payments over €100.
Concerns have been raised about customers who opt to pay LPT on a weekly basis through a cash payment in the post office being faced with transaction charges of €52 per annum as a result of the €1 service charge per transaction imposed by An Post. While the Revenue Commissioners require any payment service provider to satisfy certain terms and conditions in order to be approved to provide the service, it is solely a matter for each provider, including An Post, to determine the rate of any transactional charge that may apply in the provision of this service. As I have indicated earlier, an alternative method of paying LPT on a phased basis, cost-free, is for the property owner to opt to have the tax deducted at source from employment, occupational pension income or from certain payments made by the Departments of Social Protection and Agriculture, Food and the Marine.
The amount of each instalment payment that has to be made by the property owner will depend on the amount of LPT due that is associated with the particular valuation band that the owner's property falls within. It is also dependent on when the option is exercised. In this regard, to ensure the payment is spread over the full six months from July, paper returns should be filed on or before 7 May and online by 28 May. Otherwise, the amount collected in each instalment may be higher. The table that follows this reply sets out the weekly and monthly payments for 2013 for each valuation band, where a property is valued at less than €1 million and the returns are filed on time. The amounts shown are exclusive of any fees imposed by payment service providers and financial institutions. I am informed by the Revenue Commissioners that the payment method selected for 2013 will automatically apply for 2014 and subsequent years unless the property owner advises Revenue that he or she wished to select an alternative method. I am satisfied that the range of payment options provides a great amount of flexibility in paying the tax and will allow liable persons to choose the option that suits their own particular circumstances.
Details of the amount of LPT that will be deducted according to each valuation band
|
Valuation Band Number |
Valuation Band € |
Mid-point of Valuation Band € |
LPT in 2013 (half-year charge) € |
Monthly Payment € |
Weekly Payment € |
|
01 |
0 to 100,000 |
50,000 |
45 |
7.50 |
1.73 |
|
02 |
100,001 to 150,000 |
125,000 |
112 |
18.66 |
4.30 |
|
03 |
150,001 to 200,000 |
175,000 |
157 |
26.16 |
6.03 |
|
04 |
200,001 to 250,000 |
225,000 |
202 |
33.66 |
7.76 |
|
05 |
250,001 to 300,000 |
275,000 |
247 |
41.16 |
9.50 |
|
06 |
300,001 to 350,000 |
325,000 |
292 |
48.66 |
11.23 |
|
07 |
350,001 to 400,000 |
375,000 |
337 |
56.16 |
12.96 |
|
08 |
400,001 to 450,000 |
425,000 |
382 |
63.66 |
14.69 |
|
09 |
450,001 to 500,000 |
475,000 |
427 |
71.16 |
16.42 |
|
10 |
500,001 to 550,000 |
525,000 |
472 |
78.66 |
18.15 |
|
11 |
550,001 to 600,000 |
575,000 |
517 |
86.16 |
19.88 |
|
12 |
600,001 to 650,000 |
625,000 |
562 |
93.66 |
21.61 |
|
13 |
650,001 to 700,000 |
675,000 |
607 |
101.16 |
23.34 |
|
14 |
700,001 to 750,000 |
725,000 |
652 |
108.66 |
25.07 |
|
15 |
750,001 to 800,000 |
775,000 |
697 |
116.16 |
26.80 |
|
16 |
800,001 to 850,000 |
825,000 |
742 |
123.66 |
28.53 |
|
17 |
850,001 to 900,000 |
875,000 |
787 |
131.16 |
30.26 |
|
18 |
900,001 to 950,000 |
925,000 |
832 |
138.66 |
32.00 |
|
19 |
950,001 to 1,000,000 |
975,000 |
877 |
146.16 |
33.73 |
