Dáil Éireann Debate, Tuesday - 1 July 2014
136. Deputy Michael McGrath asked the Minister for Finance if he will address a specific issue raised in correspondence by a person (details supplied) in County Cork regarding the local property tax; and if he will make a statement on the matter. [28174/14]
View answerI am advised by Revenue that 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. Specifically, as LPT is a self-assessed tax it is a matter for the property owner to calculate the tax due based on an assessment of the market value of the property.
Revenue has confirmed to me that it published extensive guidelines on how to value a property for the purposes of LPT at the time of the 2013 'bulk issue' of Returns to property owners. The guidelines included the booklet 'Your Guide to Local Property Tax', which was inserted with the Returns that issued. The guidelines clearly stated that LPT as a self-assessed tax required property owners to honestly assess the value of their residential property on the valuation date of 1 May 2013, taking into account issues such as the type and age of the property and its state of repair. Once the valuation of the property was confirmed, the property owner was required to select the Property Valuation Band most applicable to the property and to pay the amount due. The Property Band system removes any requirement to calculate a precise valuation figure and on that basis it was anticipated that for the most part change requests in respect of valuations would not occur.
The valuation, assuming it was made in good faith, is valid up to and including 2016 and is not affected by any increase or decrease in property prices or by any repairs or improvements made to the property during this period. Owners will have the opportunity to re-assess the declared value of the property on the next valuation date, which is 1 November 2016.
Notwithstanding the Property Band system, where a property owner has genuinely over-valued and over-paid LPT, then Section 26 of the 2012 Act (as amended) provides that a claim for a refund of the overpaid tax can be made to Revenue subject to certain conditions being satisfied. The normal conditions require the property owner to make a submission setting out fully the nature of the error or mistake and explaining the circumstances in which the overpayment arose. Any such submission must include relevant supporting documentation such as professional valuations or relevant house price surveys for the area. The property owner should also indicate whether he/she relied on Revenue's valuation guidance for the purposes of the self-assessment.
In regard to the case to which the Deputy refers, I am informed by Revenue that a daughter of the person in question completed the LPT Return on his behalf on 21 May 2013 and clearly indicated Band 4 as the appropriate Valuation Band for the property. The associated Band 4 liability of €202 (half year) was also paid at that time.
The person subsequently paid his 2014 liability at a Band 2 rate of €225 (full year) and submitted a request to have the original Band 4 rate decreased to Band 2. As already stated, any such request must be supported with back up documentation and while some additional information was provided it was not adequate to support a reduction of 2 Valuation Bands. I am advised that a member of the LPT team actually discussed this issue with a staff member from the Deputy's office on 13 June. The LPT official specifically confirmed that the proposed reduction from Band 4 to Band 2 would not be reflective of the valuations applied in the general geographic area and that the information supplied by the person supporting such a reduction was not comparing 'like with like'.
However, the Deputy's comment in regard to the person's low income is noted. Given the circumstances, a member of the LPT team will make direct contact with the person in the coming days to discuss the valuation issue and the possibility that he may be entitled to a deferral or partial deferral from LPT depending on his income level.
