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Property Taxation Exemptions

Dáil Éireann Debate, Tuesday - 16 April 2013

Tuesday, 16 April 2013

Questions (233)

Ciara Conway

Question:

233. Deputy Ciara Conway asked the Minister for Finance if he will examine the circumstances as outlined (details supplied) in County Waterford concerning a private estate whereby home owners pay an annual fee for maintenance of a communal water system, communal sewage system, street lighting, maintenance of open spaces, public liability insurance and road maintenance but are also obliged to pay a property tax; if there are any options regarding exemptions in view of these particular circumstances; and if he will make a statement on the matter. [16215/13]

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Written answers

The Government decided that a universal liability to the Local Property Tax (LPT) should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. The Finance (Local Property Tax) Act 2012, as amended, provides for a number of specific exemptions from the charge as well as the possibility of deferring the charge in certain cases of hardship.

A requirement to pay management fees is not relevant in determining liability. Accordingly, whilst those who are liable for management fees to property management companies may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees. I have no plans to introduce such an exemption.

I am informed by the Revenue Commissioners that 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. Liability to management fees and the scale of the fees due would be one of the factors that a property owner would take into account in valuing their property.

Revenue from the LPT will accrue to local authorities and will support the provision of local services. Local authorities provide a broad range of services in the public realm which benefit the wider community and the proper functioning of which are important for the wellbeing of every community and household. These include fire and emergency services; road maintenance and cleaning; street lighting; spatial and development planning and other similar services; regulatory and inspection functions and business support services, as well as libraries, parks, and other recreation and cultural public amenities.

Question No. 234 answered with Question No. 198.
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