Dáil Éireann Debate, Tuesday - 27 February 2024
157. Deputy Cian O'Callaghan asked the Minister for Finance the method the Revenue Commissioners use for calculating yearly interest rates on local property tax; the reason behind fluctuating rates; if the Revenue Commissioners are required to inform homeowners of increasing or decreasing interest rates each year; the way for homeowners to challenge increased interest rates; and if he will make a statement on the matter. [9326/24]
View answerI am advised by Revenue that property owners who fail to comply with their Local Property Tax (LPT) obligations are subject to a range of collection and enforcement options including the charging of interest on late payments. Where LPT remains unpaid, taxpayers are informed in writing that interest will apply on the late payment.
The current interest rate for late payments of LPT, which has not been amended since the introduction of LPT in 2013, is 8% per annum (0.0219% per day). The interest is calculated using the following formula: T x D x R, where T is the LPT payable which remains unpaid, D is the number of days (including part of a day) in the period during which the LPT remains unpaid, and R is the rate of 0.0219%. Consequently, interest will continue to increase on a daily basis until the LPT is paid.
Exceptionally, a reduced interest rate of 3% per annum (0.008% per day) is currently available where a property owner has qualified for a deferral of the LPT due. Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) includes arrangements whereby a person may opt to defer, or partially defer, payment of LPT if certain conditions are met. This current rate was introduced on 1 January 2022, where previously it was 4% per annum (0.011% per day).
