The Government decided a universal liability to the Local Property Tax (LPT) should apply to all owners of residential property. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. The current central rates, of 0.18% on values up to €1 million, where LPT applies at the midpoint of a valuation band, and 0.25% on any portion of the value over €1 million, where no banding applies, are significantly lower than the rates of property tax in most other countries.
There is no relief or adjustment to the charge to LPT based on the number of occupants in a property. As a matter of Government policy, and in order to keep the rate of the tax low, the Government agreed that reliefs should be targeted at owner occupiers where there is inability to pay the tax.
The system of deferrals provided for in the Finance (Local Property Tax) Act 2012 (as amended) is more targeted at cases of need than a relief based on single occupancy of the property. A deferral is a relief in that it enables persons who are not currently in a position to pay the tax to postpone payment until such time as their circumstances change, or until the property is sold or transferred. There is particular provision for deferral of LPT for income stressed households who are meeting high levels of mortgage interest. This applies to single occupancy households as well as those with multiple occupants.