Dáil Éireann Debate, Thursday - 23 September 2021
207. Deputy Neale Richmond asked the Minister for Finance if homes affected by pyrite and therefore have no market value are exempt from paying local property tax; and if he will make a statement on the matter. [45921/21]
View answer208. Deputy Neale Richmond asked the Minister for Finance the process by which a homeowner can confirm their exemption to paying the local property tax due to pyrite; and if he will make a statement on the matter. [45922/21]
View answer209. Deputy Neale Richmond asked the Minister for Finance if a home (details supplied) is exempt from paying local property tax due to pyrite issues; and if he will make a statement on the matter. [45923/21]
View answerI propose to take Questions Nos. 207 to 209, inclusive, together.
Local Property Tax (LPT) operates on a self-assessment basis and it is a matter for the property owner in the first instance, to calculate the tax due based on his or her assessment of the market value of the property. When making an assessment, issues such as the presence of pyrite would be one of the factors that a property owner should take into account in valuing their property.
The qualifying criteria in respect of the exemption from LPT on foot of significant pyrite damage is set out in the Finance (Local Property Tax) (Amendment) Act 2015 for the current ‘valuation period’ (2013 to 2021). The criteria for the next ‘valuation period’ (2022 to 2025) is set out in the Finance (Local Property Tax) (Amendment) Act 2021.
In accordance with the legislation, a residential property is eligible for exemption from LPT on foot of pyrite related damage where:
1. a certificate of damage has been completed by a competent person or,
2. the property has been accepted into the Pyrite Remediation Scheme operated by the Pyrite Resolution Board or,
3. an insurance company has remediated the property or provided sufficient funds to carry out the remediation or,
4. the builder who constructed the property has remediated it or provided sufficient funds to carry out the remediation.
Property owners claiming the exemption under Criteria 1 must provide a certificate to Revenue, which is completed in accordance with I.S. 398-1.2013 as set down by the then Minister for the Environment, Community and Local Government. Property owners claiming the exemption under Criteria 2 to 4 must also provide the relevant supporting documentation to Revenue.
Where the LPT exemption is granted, it applies for a fixed period of six years from the first ‘liability date’ (1 November) after the property is confirmed as meeting the eligibility conditions. For example, if a property qualifies for the exemption from the ‘liability date’ 1 November 2021, it will be exempt from LPT for the years 2022 to 2027 (inclusive). It is important to note that while the exemption is being phased out and will not be available after 21 July 2023, properties that become eligible on or before this date will still benefit for a period of six years.
Property owners whose properties meet the eligibility criteria can claim the ‘pyrite exemption’ when completing the LPT return for the next valuation period (2022 to 2005), which should be submitted by 7 November 2021. The relevant supporting documentation should also be submitted in support of the claim. Further details in relation to the qualifying criteria and how to claim an exemption for a property with significant pyrite damage are available on the Revenue website at www.revenue.ie/en/property/local-property-tax/exemptions-apply-2022-2025/properties-certified-with-pyritic-damage.aspx, which may be of assistance to the Deputy.
Finally, I am advised by Revenue that the ‘liable person’ for the property referenced by the Deputy in Question 45923/21 has not made a claim for an exemption from LPT due to pyrite damage. Revenue has also advised that it will make direct contact with the person in the coming days to explain the eligibility criteria for the exemption and advise on the type of supporting documentation required.
