Michael Healy-Rae
Question:53. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding the local property tax; and if he will make a statement on the matter. [48566/13]
View answerWednesday, 13 November 2013
Questions (53, 57)
Michael Healy-Rae
Question:57. Deputy Michael Healy-Rae asked the Minister for Finance further to Parliamentary Question No. 161 of 7 November 2013, his views on correspondence (details supplied) regarding the local property tax; and if he will make a statement on the matter. [48574/13]
View answerWritten answers
I propose to take Questions Nos. 53 and 57 together because they relate to the same queries.
I am advised by the Revenue Commissioners that the following is the position on the issues raised.
The Local Property Tax (LPT) was introduced as a half year charge for 2013, with 2014 being the first full year of the tax. The due dates for paying LPT are set out in legislation. The due date for paying the 2013 LPT was on or before 1 July 2013. The due date for payment of the liability for 2014 and future years is on or before 1 January.
The full year charge for LPT is 0.18% of the mid-point of the valuation band for each property, where the property is value is under €1 million. (For properties valued over €1 million, the rate is 0.18% on the first €1 million and 0.25% on the excess, with no banding applied.) In the case raised by the Deputy the full year charge for both properties is a total of €810, the charge on the first property being €585 and on the second being €225. The half-year charges were each rounded down to €292 and €112 respectively. The letter advised the person concerned that a detailed breakdown of the liability per property was available online through www.revenue.ie using the Property ID and PIN provided on the letter.
LPT is chargeable on residential properties in the State. In most cases the owner of the property is liable. In the context of a rented property, the landlord is liable where the property is let for a period of less than twenty years.
The LPT legislation provides a return date of 7 November for liable persons to advise Revenue of their payment option. The Deputy may be aware that Revenue has extended the paper filing deadline by one week to 14 November. The online filing date has been extended by Revenue to 27 November. These deadlines are to ensure there is sufficient time to set up direct debits or other phased payment arrangements in time to start in 1 January.
The person in question was issued with a letter that set out his liability for 2014 and requested him to confirm to Revenue his chosen payment method for 2014. This does not mean that he is required to pay his 2014 LPT liability before 1 January 2014 unless he chooses to do so. The only requirement is for him to confirm his payment method online by 27 November. As the person in question is a multiple property owner he is obliged to pay and file online, therefore his payment options are: - Spread payments evenly throughout 2014 by way of direct debit (direct debits commence on 15 January 2014);
- Spread payments evenly throughout 2014 by way of deduction from salary, pension or Government payment;
- Pay in full now by debit/credit card.
- Pay in full by single debit authority (like a cheque), which will mean the bank account will be debited by Revenue on 21 March 2014.
Should the person wish to continue paying his LPT liability using Single Debit Authority, he should access his online account via www.revenue.ie using his Property ID and PIN numbers and complete the mandate as instructed. I can confirm that if he uses the Single Debit Authority option his account will not be deducted until 21 March 2014, unless he specifies an earlier payment date.
Questions about how revenues from the LPT are used should be directed to my colleague, the Minister for the Environment, Community and Local Government.