The Finance (Local Property Tax) Act 2012 (as amended) sets out how a residential property is to be valued for Local Property Tax (LPT) purposes. I am informed by the Revenue Commissioners that, as 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 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 2103, it is anticipated that, for the most part, overpayments of LPT should not happen.
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 was made due to an error or mistake 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 without making their own assessment. However, in the meantime, if a person has such concerns regarding their LPT, 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 could be in the form of recent sales or advertised house prices in the area, professional valuations or house price surveys for the area.