Dáil Éireann Debate, Wednesday - 25 March 2015
44. Deputy Pearse Doherty asked the Minister for Finance the amount of revenue, using the latest available data on house prices the local property tax would raise, if it was based on these up-to-date valuations, and ignoring local variations implemented by local councils in the rate. [12249/15]
View answerUnder existing legislation, liability to Local Property Tax (LPT) for the years 2013 to 2016 is based on the (initial) self-assessed valuation of a property on 1st May 2013, assuming it was made in good faith.
This valuation remains valid from 1 May 2013 to 31 October 2016, and will not be affected by any increase or decrease in property prices or other changes, including repairs or improvements made, during this period.
The next valuation date is not until 1 November 2016, and the self assessed valuations on that date will determine property tax liability for the years 2017, 2018 and 2019.
Valuation periods of three years were introduced (with the exception of the first valuation period which covers three and a half years) in order to provide certainty to homeowners as to the liability to LPT and to ease the administration burden by not having to revalue their houses each year.
I have asked Dr Don Thornhill to conduct a review to consider and make recommendations on the operation of the Local Property Tax (LPT) having regard, in particular, to any impacts on LPT liabilities due to property price developments. The review will examine the operation of the Local Property Tax and make recommendations in relation to issues that arise from the review.
The Review will have regard to:
- Recent residential property price developments,
- The overall yield from LPT and its contribution to total tax revenue on an ongoing basis, and
- The desirability of achieving relative stability, both over the short and longer terms, in LPT payments of liable persons.
Recent property price developments will have minimal, if any, impact on LPT liabilities in the period up to the end of 2016. Furthermore, the outcome of the Review will be factored into any policy decisions governing the basis on which LPT liabilities are determined thereafter. I am well aware of concerns arising in relation to LPT liabilities from price developments, particularly in larger urban areas. However, I do not consider that it would be helpful in the circumstances outlined above, to hypothesise on their likely impact in advance of the outcome of the Review and decisions which may be made on foot of any recommendations arising from the Review.
