Dáil Éireann Debate, Tuesday - 25 March 2014
255. Deputy Michael McGrath asked the Minister for Finance the person responsible for the payment of the local property tax where a receiver has been appointed to the property by a financial institution; and if he will make a statement on the matter. [13905/14]
View answerUnder the Finance (Local Property Tax) Act 2012 (as amended), the person who is the liable person on the liability date for a particular year is the person who is responsible for the payment of Local Property Tax (LPT) for that year. Thus, for example, the person who is the liable person on 1 November 2013 is responsible for the payment of LPT for the year 2014.
In general, the owner of a residential property is the liable person and continues to be so notwithstanding the appointment of a receiver. However, where a financial institution enforces its security over a property by taking possession of the property, the financial institution, as a mortgagee in possession , displaces the owner of the property as the liable person.
While a receiver is not a liable person under the Finance (Local Property Tax) Act 2012 (as amended), it can happen that he or she may assume responsibility for payment of LPT. However, such responsibility does not come within the scope of the LPT Act. It is not possible to give a definitive answer about the circumstances in which this might happen as it will depend on the terms of the particular mortgage deed between the property owner and the financial institution, the terms under which the receiver is appointed and whether, depending on when the mortgage deed was created, it is governed by the Conveyancing Act 1881 or the Land and Conveyancing Law Reform Act 2009.
