Dáil Éireann Debate, Tuesday - 8 November 2022
285. Deputy Réada Cronin asked the Minister for Finance if homeowners subject to payment of both service charges to an owner's management company and liability for payment of LPT to a local authority could be allowed by his Department to off-set service charges against LPT until their estate is taken-in-charge by the local authority (details supplied); and if he will make a statement on the matter. [55026/22]
View answerAs I outlined in a recent response to the Deputy, the Government decided upon the introduction of the Local Property Tax (LPT), that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions and no deductions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption.
The proceeds of the LPT are largely used in the general provision and maintenance of infrastructure, services and amenities in a local authority area. Accordingly, residential property owners in estates not yet taken in charge benefit from the expenditure of these proceeds in the same way as the owners of other residential properties in the general locality in terms of the provision of public roads, footpaths, lighting, open spaces, surface water drainage and other public amenities. LPT is payable, regardless of whether or not an estate has been taken in charge.
A requirement to pay a management fee or service charge to property management companies is not relevant in determining whether a property is subject to the LPT. Accordingly, whilst those who are liable for these payments may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees, nor is there provision to offset the amount paid on management fees against LPT. There are no plans to change this.
The relevant planning and development matters fall under the responsibility of my colleague, the Minister for Housing, Local Government and Heritage. However, I am informed by the Department of Housing, Local Government and Heritage that section 180 of the Planning and Development Act 2000 (as amended), sets out the process to be followed in relation to the taking in charge of housing estates where a development is considered to have been satisfactorily completed, as well as the procedure where it has not been completed to the satisfaction of the planning authority. It is a matter for the relevant planning authority to agree to take in charge any individual housing estate.
Ultimately, the Department of Housing advise that progression of individual developments through the taking-in-charge process is a matter for the relevant housing developer, the residents in such developments and the relevant local authorities, following the procedures set out in section 180 of the Planning and Development Act.
