Dáil Éireann Debate, Thursday - 23 March 2023
201. Deputy Michael Ring asked the Minister for Finance if he plans to extend the local property tax exemption for properties certified as damaged by pyrite to new applicants beyond 22 July 2023; and if he will make a statement on the matter. [14390/23]
View answerSection 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for an exemption for a temporary period from the charge to Local Property Tax (LPT) for residential properties that have been certified as having a significant level of pyrite damage. The exemption is subject to certain qualifying conditions set out in the relevant legislation.
This section was amended by the Finance (Local Property Tax) (Amendment) Act 2015 to relax and extend the qualifying conditions and the duration of the exemption to six consecutive years (from three years).
As noted by the Deputy, this exemption is being phased out. The Finance (Local Property Tax) (Amendment) Act 2021 provides that this exemption will not be available for properties that do not meet the qualifying conditions on or before 21 July 2023. It is important to note that while the exemption is being phased out and will not be available after this date, properties that become eligible on or before this date will still benefit for a period of six years.
The Government has been very active in addressing the problem of pyrite damage and the more recent manifestations of mica related damage in some western counties. I am informed by the Department of Housing, Local Government and Heritage that as of end-2022, €171.8 million has been provided to the Pyrite Remediation Scheme since its establishment in 2014, and an allocation of €25 million was made for the scheme in Budget 2023.
As of end-February 2023, 3,211 applications have been received for the Pyrite Remediation Scheme since 2014. Of these, 2,561 have completed the remediation process, with a further 181 dwellings included in the scheme.
As of the latest LPT statistics (January 2023), the exemption from LPT had been claimed in respect of 1,357 properties.
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. It is accepted that the existence of pyrite, whether it has already caused structural damage or has the potential to cause such damage, has a negative effect on the market value of a residential property. In such circumstances, the property owner is entitled to take account of its presence when determining the appropriate LPT valuation.
The Deputy may also wish to note that the Finance (Local Property Tax) (Amendment) Act 2021 provides for an exemption from LPT for a period of six years for homes whose owners are eligible for the defective concrete blocks scheme.
Detailed guidance in relation to LPT including exemptions from the charge is available on the Revenue website.
