Dáil Éireann Debate, Tuesday - 15 April 2014
169. Deputy Finian McGrath asked the Minister for Finance if consideration has been given to the due date on the local property tax as many families are finding it hard after Christmas; and if he will make a statement on the matter. [17433/14]
View answerThe issue of due dates for Local Property Tax (LPT) has been dealt with extensively in my replies to Questions raised in this House since November 2013, and also by the Chairman of the Revenue Commissioners in her appearance before the Joint Committee on Finance, Public Expenditure and Reform on 7 November 2013. I would like to re-iterate that in accordance with the Finance (Local Property Tax) Act 2012 (as amended) the tax for each year is payable on or before 1 January of that year. Because of the proximity to Christmas, Revenue wrote to property owners in late October last year setting out a wide range of payment options. These options give property owners a substantial amount of control over how and when to pay LPT liabilities. Many people chose to pay before Christmas because that suited their circumstances. The Deputy will also be aware from replies to previous Questions on payment dates as well as the extensive media coverage around this subject that property owners had the option to pay the tax in full by Single Debit Authority on 21 March in any year, thus deferring the payment until well after the Christmas period.
The legislation also makes provision for property owners to pay the tax for any year on a phased basis over the course of the year rather than in a single payment on or before 1 January of each year. In practical terms, a due date for payment by 1 January each year ensures that phased payments are spread evenly over the year. This payment option is still available, either by Direct Debit or by deduction for example from salary or pension, although the payment will now be spread over fewer months. It seems to me that property owners fully appreciate the range of payment options that are available and make their own decisions on the option that best suits their circumstances. I am advised by the Revenue Commissioners that, for example, over 40% of taxpayers elected to pay their 2014 LPT by a phased payment method and a further 30% elected to pay by Single Debit Authority on the 21 March just passed.
Where a person is having difficulty meeting their obligations, Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a system of deferral arrangements for owner-occupiers where there is an inability to pay the tax and the person meets certain criteria based on income thresholds. Details of the deferral arrangements are set out on the Revenue website at http://www.revenue.ie/en/tax/lpt/deferring-payment.html. I am also advised that property owners were recently given a final opportunity to bring their LPT affairs up to date and avoid interest and penalties. Owners had until 2 April 2014 to file any outstanding Returns and make arrangements to pay their outstanding LPT, including any liability for 2014. It is very important at this stage, as the Revenue Commissioners move into their compliance campaign, that property owners make arrangements to pay their 2014 LPT or, claim an exemption from the tax or a deferral, if appropriate, by accessing their LPT record on-line using their Property ID, PIN and PPSN. Where assistance is required to file on-line, or where a person does not have their Property ID or PIN, they should call the LPT helpline on 1890 200 255.
While I appreciate the Deputy's comments about the hardship for certain families, I am satisfied that the LPT legislation provides significant flexibility for property owners to choose the timing of their annual payment of LPT and, therefore, I have no plans to amend the legislation in relation to the due date for payment of the tax.
