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Property Taxation Exemptions

Dáil Éireann Debate, Wednesday - 17 April 2013

Wednesday, 17 April 2013

Questions (85)

Róisín Shortall

Question:

85. Deputy Róisín Shortall asked the Minister for Finance the basis on which owners of properties with pyrite will be asked to verify the presence of pyrite in order to qualify for an exemption of the local property tax; the prevalence thresholds of pyrite that will apply in order to qualify; if all residents of for example an apartment block will be asked for separate verification if the prevalence of pyrite is proved in common areas in such a development; the action that he is taking to ensure that in meeting the verification criteria that costs and administrative burdens to property owners are minimised. [17754/13]

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Written answers

Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a temporary exemption of at least three consecutive years from the charge to Local Property Tax (LPT) for residential properties that have been certified as having “significant pyritic damage”.

The methodology for the assessment of dwellings to establish significant pyritic damage will be prescribed in regulations to be made by the Minister for the Environment, Community and Local Government. I understand that the regulations are currently being finalised and will be published shortly.

I am advised by the Minister for the Environment, Community and Local Government that homeowners will be required to demonstrate significant pyritic damage 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 building condition assessment, sampling and testing to be carried out to establish the presence of significant pyritic damage.

To be eligible for an exemption from the LPT, a homeowner must obtain a certificate, from a competent person, confirming the presence of significant pyritic damage on the basis of a building condition assessment and having regard to the outcome of the testing and classification of the sub-floor hardcore material carried out in accordance with I.S. 398. Eligibility for an exemption will be determined by reference to the presence of significant pyritic damage in the relevant property concerned. Significant pyritic damage to common areas, in situations where the relevant property itself is unaffected or in respect of which a certificate is not issued, would be one of the factors that a property owner would take into account in valuing their property.

Conscious of the need to reduce costs to affected homeowners, I understand that provision will be made in the Regulations being made by the Minister for the Environment, Community and Local Government for the use, where feasible, of test results from sampling and testing undertaken to classify the sub-floor hardcore material prior to the publication of I.S. 398. Such testing results must be validated by a competent person as being in accordance with, or equivalent to, I.S. 398. A building condition assessment will be required to be carried out by a competent person irrespective of when such testing is, or was, carried out.

A homeowner cannot claim the exemption until the relevant certificate has been issued. He or she should notify Revenue at that stage to claim the exemption. Special arrangements will apply in respect of 2013 and 2014 to facilitate homeowners in claiming an exemption. While homeowners who do not have the relevant certificate on the first liability date of 1 May 2013 (liability date for 2013), or by 1 November 2013 (liability date for 2014), will be required to pay LPT for those periods, they will be able to reclaim the tax paid if they obtain the certificate by 31 December 2013 and notify the Revenue Commissioners in writing on or before 31 January 2014. As an alternative to such retrospective treatment, they can opt to start the period of exemption from the liability date following the issue of the certificate.

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