I propose to take Questions Nos. 244, 245 and 263 together.
Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a temporary exemption of at least three years from the charge to Local Property Tax (LPT) for residential properties that have been certified under Regulations made by the Minister for the Environment, Community and Local Government (S.I No 147 of 2013) as having "significant pyritic damage". For the Deputies' information "significant pyritic damage" includes properties that are certified as having a Damage Condition Rating of '2' or a Damage Condition Rating of '1' with progression.
The Regulations also specify the assessment methodology that must be applied to confirm the presence of significant pyrite damage and the type of certification that must be produced before an exemption from LPT can be granted (IS 398-1-2013).This is the only type of certification that is relevant under current legislation and the Revenue Commissioners have no discretion to apply an exemption from LPT on foot of any other type of supporting documentation.
In regard to the specific cases mentioned by the Deputies in Questions 24829-15 and 25084-15, I am advised that the property owners in question have not produced the required certificates confirming 'significant pyritic damage' and for that reason the Revenue Commissioners are prohibited by law from applying LPT exemptions to the relevant properties.
The Deputies may be aware that I have initiated a review of the operation of LPT. The review is being conducted by Dr Don Thornhill and is due to be presented to me no later than summer 2015.
The review will primarily have regard to recent residential property price developments, the overall yield from LPT and the desirability of achieving relative stability in LPT payments. It will however also address a number of matters relating to the administration of LPT, including the operation of the pyrite exemption provisions.
A resolution to the pyrite issues may necessitate a change in the relevant provisions of the Finance (Local Property Tax) Act 2012 (as amended) and/or the Finance (Local Property Tax) (Pyrite Exemption) Regulations. If it is the case that legislative change is required, then I will examine the possibilities for its advance application on an administrative basis with the Revenue Commissioners.
However, pending any decisions in relation to the statutory provisions, the Revenue Commissioners have an obligation to act in accordance with section 10A of the Finance (Local Property Tax) Act 2012 (as amended), which requires that an LPT exemption can only apply where the residential property has been assessed and a relevant certificate confirming "significant pyritic damage" has issued to the property owner.
