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. LPT is a self-assessed tax so 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 as at 1 May 2013. When completing their LPT Return last year, it was expected that property owners would make their best endeavours to self-assess the value of their property at 1 May 2013 and the Revenue Commissioners provided guidance, including an online valuation guidance tool, to assist property owners in making their self-assessment.
The procedure to be followed by those property owners who have overvalued their property, and as a consequence, have overpaid their LPT has been the subject of replies by me to a number of specific Parliamentary Questions, most recently Question No. 154 (1611/14) on 15 January 2014. In addition, the matter has been covered on the website of the Revenue Commissioners for some time.
The Revenue Commissioners have confirmed that if a property owner has genuinely overpaid the tax through an error or mistake concerning the property's value as at 1 May 2013, he/she should write to the Revenue Commissioners, Local Property Tax Branch, PO Box 1, Limerick. The online self-correction facility cannot be used to self-correct a valuation downwards. When submitting the claim to Revenue, the property owner should clearly explain how the error or mistake occurred, confirm the revised valuation band/valuation for the property and include relevant documentation in support of the claim. Any of the following types of supporting documentation can be submitted to Revenue:
- A copy of a professional valuation as at 1 May 2013 (if one is available).
- Photographs of the property clearly indicating the features that influence a lower valuation.
- Documented information on property sales for comparable properties in the local area around 1 May 2013 e.g. from the Residential Property Price Register www.propertypriceregister.ie
- Documented information on any house prices survey in the area reflecting values around 1 May 2013.
- Details of advertised house prices for comparable properties in the area around 1 May 2013 e.g. from www.daft.ie or www.myhomes.ie.
If Revenue are satisfied that the person did genuinely overpay their LPT, it will be possible to offset some or all of the overpayment to the owner's 2014 LPT liability, if it is not already paid, or to make a refund of the overpayment, provided the owner's tax affairs are up to date.
