Wednesday, 8 May 2019

Questions (111)

Robert Troy

Question:

111. Deputy Robert Troy asked the Minister for Finance the expected increase in local property tax for each of the rate bands following reviews; and when the changes will take effect. [18456/19]

View answer

Written answers (Question to Finance)

The review I initiated of the Local property Tax (LPT) has been completed by the Department of Finance in conjunction with the Departments of the Taoiseach, Public Expenditure & Reform and Housing, Planning & Local Government and the Revenue Commissioners. In accordance with its terms of reference, the review focused on the impact of house price movements on LPT liabilities under a series of scenarios involving different rate and tax band structures, with each having different possible increases.

However, against a background of significant but geographically uneven increases in residential property price levels I believe it is necessary to engage in further consultation to identify a scenario that would deliver on the condition I set that there should be relative stability for all taxpayers in their LPT liabilities and that any increases should be modest, affordable and fair.

Having considered the findings of the review report, I decided to defer the valuation date from 1st November 2019 to 1st November 2020. This will give sufficient time for the Budgetary Oversight Committee to consider the review report in the context of the Committee’s recommendations in its report on LPT of 21 March 2018. Importantly, as a result of my decision, the LPT bills of those liable for the tax will not be increasing in 2020.

I look forward to engaging constructively with the Committee.