The Finance (Local Property Tax) Act 2012 (as amended) sets out how Local Property Tax (LPT) is to be administered and how a residential property is to be valued for LPT purposes. I am informed by the Revenue Commissioners that LPT is a self-assessment 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 impact of serious and regular flooding on a property, including the issue of flood insurance, would be factors that a property owner would take into account in valuing the property.
In addition, one of the advantages of the banding system of values provided for in the legislation is to remove the need for precision in relation to the market value, except for properties worth over €1million. The Revenue Commissioners have provided guidance to assist liable persons in assessing the value of their property. Specific guidance dealing with the issue of valuation and flooding is provided in the frequently asked questions on valuation on the Revenue website at http://www.revenue.ie/en/tax/faqs/valuation.html.
Where these guidelines are used honestly, together with a liable person's own knowledge of their property, the property valuation will not be challenged by Revenue in accordance with their normal Customer Service Charter.