Dáil Éireann Debate, Tuesday - 4 October 2022
217. Deputy Thomas Pringle asked the Minister for Finance if he will remove the local property tax due to the difficulty which many householders are encountering with the cost-of-living crisis being experienced at present (details supplied); and if he will make a statement on the matter. [47980/22]
View answerThe Government recognises the impact rising prices have had on households and businesses across the country and has taken significant action. On Budget Day this Tuesday, Minister McGrath and I announced a “cost-of-living” package of once-off measures worth €4.1 billion. This was accompanied by budgetary measures for 2023 worth €6.9 billion.
The total size of Budget 2023 is €11 billion. This package builds on the fiscal supports the Government has already provided, with the aim of helping families, individuals and businesses deal with the rising cost of living.
The Local Property Tax (LPT) was introduced in 2013 to provide a stable and sustainable funding base for local authorities and is a significant base-broadening measure. LPT has yielded over €4 billion for Local Authorities since its introduction.
All property owners benefit from the essential local services LPT helps to fund. The proper functioning of these services is important for every community and household. If the tax were abolished, the funding gap would ultimately need to be met by the Exchequer in the form of increased general taxation. For these reasons, I do not plan to abolish the Local Property Tax.
The Finance (Local Property Tax) (Amendment) Act 2021 provides for a cut in the main rate of the tax and widening of the valuation bands to make the changes affordable in accordance with the Programme for Government commitment. As these changes were implemented for the 2022 LPT year, this meant that the majority of homeowners saw either a decrease or no change in their LPT liability. Where increases arose, the majority were by a single band.
The LPT legislation provides for the possibility of deferring the charge to LPT in certain circumstances to assist individuals who may have difficulty paying the tax. A qualifying person may opt to defer, or partially defer, payment of the tax. The deferred tax remains as a charge on the property, and must be paid before a sale or transfer can be completed.
It is also possible to apply for a deferral on the grounds of hardship if a person suffers an unexpected and unavoidable significant loss or expense. Further information regarding the deferral of LPT is available on the Revenue website at: www.revenue.ie/en/property/local-property-tax/deferral-of-payment/index.aspx
I am advised by Revenue that it has engaged extensively with residential property owners who are experiencing financial difficulties, to agree flexible LPT payment arrangements that best suit their circumstances and avoid unnecessary hardship, and Revenue has assured me that this will continue to be the case.
Any property owners experiencing financial difficulties can avail of a wide range of flexible payment options both in respect of 2022 liabilities and for any previous years where liabilities remain outstanding. The full range of payment options, which includes phased arrangements, are available to property owners on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx.
The LPT payment compliance rate for 2022 currently stands at 96%. Payment of the LPT for 2023 is not due until January 2023, at the earliest.
Finally, property owners experiencing difficulties in meeting their LPT obligations can contact Revenue through MyAccount at www.revenue.ie or by calling the LPT helpline (01) 7383626.
