Thursday, 18 April 2013

Questions (59)

Finian McGrath

Question:

59. Deputy Finian McGrath asked the Minister for Finance if he will support a matter regarding the property tax (details supplied). [18061/13]

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Written answers (Question to Finance)

I am informed by the Revenue Commissioners that the Local Property Tax 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 chargeable value of the property. The chargeable value is defined in the Finance (Local Property Tax) Act 2012, as amended, and means the price that the unencumbered fee simple of a residential property might be expected to fetch on a sale on the open market, were that property to be sold on the valuation date of 1 May 2013, in a manner that would secure the best possible price for the property. In assessing the market value of a residential property no account may be taken of any encumbrance on the property. Therefore, any restrictions on the sale of the units in the complex referred to are not relevant when establishing the chargeable value for Local Property Tax purposes. The individual units should be valued as if there was no restriction on their sale. However, the state of the completion of the complex, including the common areas, is clearly a relevant factor in assessing the valuation band for the individual units.