Dáil Éireann Debate, Tuesday - 21 May 2013
74. Deputy Róisín Shortall asked the Minister for Finance if he will ensure that arrangements are put in place to refund property owners when it is found that they have mistakenly overpaid the local property tax because they have over-valued their property. [23846/13]
View answer150. Deputy Brendan Griffin asked the Minister for Finance the redress available for persons who inadvertently overpaid property tax after using the estimate on the return form they received from the Revenue Commissioners; and if he will make a statement on the matter. [23714/13]
View answerI propose to take Questions Nos. 74 and 150 together.
The Finance (Local Property Tax) Act 2012 sets out how a residential property is to be valued for Local Property Tax (LPT) purposes. I am informed by Revenue 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. The Commissioners have also comprehensively explained the purpose of the Revenue Estimate and advised property owners that the Revenue Estimate may be used as the self-assessed valuation band, only where the property owner is satisfied that it fairly reflects their own valuation for their property. For the purposes of LPT, values for properties under €1 million are organised into valuation bands, with a range of €50,000 in each band. As property owners will not be required to provide a precise value for their property, it is anticipated that for the most part overpayments of LPT should not happen.
The initial valuation of a property on 1 May 2013, assuming it is made in good faith, is valid up to and including 2016 and will not be affected by any increase or decrease in property prices or other changes, during this period. This will ensure a measure of certainty for all property owners. Accordingly, where an owner assesses that the value of a residential property on 1 May 2013 places it in a particular valuation band but, due to a general decrease in property prices after that date the reduction in the value of the property would place it in a lower valuation band, the owner will not be entitled to a refund of tax. By the same token, if the property increases in value in that period, no additional charges will apply. The owner will, however, have the opportunity to re-assess the value of the property on the next valuation date, which is 1 November 2016.
Notwithstanding the above, I am advised by Revenue that Section 26 of the 2012 Act (as amended) provides for the possibility of a refund where an overpayment of LPT was made due to an error or mistake on a Return or a statement made by the liable person, subject to certain conditions being satisfied. This might arise, for example, where a liable person had paid their LPT charge but they subsequently discovered that their property was exempt from the charge. In the context of Section 26 where an error or mistake is proven, I am advised that once a true and complete Return has been prepared and delivered to Revenue and all the information required to make a determination on the case has been provided, a refund may issue where a claim for repayment is submitted within the normal four year time limit.
The Revenue Commissioners have advised me that they will issue detailed guidelines later in the year setting out the procedures to be followed by those who consider that they have either over or under valued their property for LPT purposes.
