Robert Dowds
Question:151. Deputy Robert Dowds asked the Minister for Finance if there is any redress for owners who have over-assessed the value of their dwellings. [32955/13]
View answerTuesday, 9 July 2013
Questions (151)
Written answers
I am informed by the Revenue Commissioners that as the Local Property Tax (LPT) is a self-assessed tax 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. For the purposes of LPT, values for properties under €1 million are organised into valuation bands, with an initial band from €0 to €100,000 and 18 bands between €100,001 and €1,000,000 with a range of €50,000 in each band. As property owners were not required to provide a precise value for their property as at 1 May 2013, it is anticipated that for the most part overpayments of LPT should not happen. That initial valuation of a property on 1 May 2013, assuming it was 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 assessed 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.
Revenue is most concerned that people meet their obligations voluntarily and pay the correct amount of tax. However, if someone has genuinely overpaid their LPT, Section 26 of the 2012 Act (as amended) provides that a claim for a refund of the tax overpaid may be made to Revenue, where the 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. In this regard, I am advised that Revenue 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 or inadvertently paid on foot of the Revenue estimate. However, in the meantime, if a person has such concerns regarding their property, they can write to LPT Branch, Government Buildings, Kilrush Road, Ennis, Co. Clare setting out their case and the matter will be considered.
I am advised by Revenue that any valuation amendments to Local Property Tax Returns must be in writing and must be supported by the appropriate evidence to explain or prove the need to decrease the value. Evidence can be in the form of recent sales or advertised house prices in the area, professional valuations or house price surveys for the area.
Question No. 152 answered with Question No. 150.