Dáil Éireann Debate, Tuesday - 16 April 2013
293. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding an anomaly in the local property tax; and if he will make a statement on the matter. [16849/13]
View answerThe 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 informed 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 and Revenue will not be involved, as a matter of routine, in valuing individual properties.
For the purposes of LPT, property values for properties under €1 million are organised into valuation bands, with a range of €50,000 in each band. This means that property owners are not required to provide a precise value for their property but instead must determine the valuation band into which their residential property falls. I am further advised by the Commissioners that the initial valuation of a property on 1 May 2013 will be valid up to and including 2016 and will not be affected by any increases or decreases in the value of properties or, improvements made to the property, over this period. This will ensure a measure of certainty for all property owners for the next three and a half years.
As I have previously advised the House, where a property owner makes their property valuation in an honest and reasonable manner, whether they base that on Revenue’s own on-line valuation guide or some other means, that valuation will not be challenged by Revenue in accordance with its normal Customer Service Charter and, consequently, additional charges will not be applied. By the same token, as property owners are not required to provide a precise value for their property, it is unlikely that any owner would find themselves in the position where they overpay their LPT.
In conclusion, Deputy, I do not consider that there is any anomaly in the LPT regime and I am satisfied that valuations of residential properties, made in good faith by the owner, will be accepted by the Revenue Commissioners.
