Dáil Éireann Debate, Tuesday - 27 July 2021
333. Deputy Ged Nash asked the Minister for Finance the estimated additional yield to the Exchequer from applying a higher rate of LPT of 0.25% or 0.2875% to properties valued over €750,001, from increasing the higher rate of LPT to 0.3% on the balance of properties valued over €1.05 million and 0.4% on the balance of properties valued over €1.75 million in tabular form; and if he will make a statement on the matter. [39885/21]
View answer334. Deputy Ged Nash asked the Minister for Finance the estimated additional yield to the Exchequer from applying a higher rate of LPT of 0.25% or 0.2875% to properties valued over €750,001; and if he will make a statement on the matter. [39886/21]
View answerI propose to take Questions Nos. 333 and 334 together.
The valuation process for Local Property Tax (LPT) will require liable persons to self-assess the value of their residential properties as at 1 November 2021 in respect of the new ‘Valuation Period’ (2022 to 2025) and submit this value to Revenue.
It is important to note that Revenue does not value properties but accepts liable persons’ self-assessed valuations, subject to the usual compliance checks that may subsequently be carried out in relation to any self-assessed tax. Revenue is preparing extensive guidance that will be made available to property owners in advance of the issuing of tax-returns to assist them in self-assessing the value of their residential properties.
I am advised that Revenue will not be in a position to analyse the data and estimate the potential yield from differing LPT rate options until after the statutory tax-returns are filed and processed. While an overall estimated yield from the proposed changes to LPT has been prepared (projected to be €560m in 2022, before any adjustments by Local Authorities), until actual valuations are available from tax-returns it will not be possible to provide accurate or robust estimates of the impacts of varying rates across different valuation bands.
