John Lyons
Ceist:81. Deputy John Lyons asked the Minister for Finance the position regarding property tax in respect of a person (details supplied). [11942/13]
Amharc ar fhreagraWednesday, 6 March 2013
Ceisteanna (81)
Freagraí scríofa
The Finance (Local Property Tax) Act 2012 sets out how the Local Property Tax (LPT) is to be administered and provides that a liability for LPT will arise where a person owns a residential property on the liability date which will be 1 May 2013 for the year 2013 and for subsequent years, 1 November in the preceding year. Where a property is owned by more than one person, the owners are jointly and severally liable for payment of the tax. This means that Revenue can pursue one person for the full liability and payment by that person discharges the tax liability of all joint owners. For the purposes of completing an LPT Return, joint owners are required to agree a valuation for the property. A single Return should be submitted on behalf of the joint owners. If the LPT is not paid, the Revenue Commissioners can proceed to collect the tax from any of the owners.
An exemption from the charge to LPT is available where a residential property was previously occupied by a person as his or her sole or main residence and has been vacated by the person for 12 months or more due to long term mental or physical infirmity and is not occupied by any other person. However, I am advised by the Revenue Commissioners that the exemption will not apply in this particular case as the parent and children own the property jointly therefore they are jointly and severally liable for the tax.
The Non-Principal Private Residence (NPPR) Charge is a matter for the Minister for the Environment, Community and Local Government. I am informed by the Minister that the Local Government (Charges) Act 2009, as amended, broadened the revenue base of local authorities by introducing a charge on non-principal private residences. The NPPR charge is set at €200 and liability for it falls, in the main, on owners of rental, holiday and vacant properties. It is a matter for an owner, whether resident in Ireland or elsewhere, to determine if he or she has a liability and, if so, to declare that liability and pay the charge. A residential property not in use by an owner as his or her sole or main residence is liable for the NPPR charge. In respect of a residential property that is co-owned by several persons, such as a parent and his or her children, each co-owner is jointly and severally liable for the charge.
Section 4(5) of the 2009 Act, as amended, provides an exemption in cases where a property is vacated due to illness, including an incapacity brought about by infirmity due to old age. However, as the specific property in this instance is shared between four liable owners and liability is joint and severable, based on the information provided it would seem that the three sibling co-owners would be liable for the NPPR charge. Should there be any doubt concerning the application of the provisions of the 2009 Act in specific circumstances, legal advice is recommended.
Under the 2009 Act, it is a function of a local authority to collect Non-Principal Private Residence Charges and late payment fees due to it, and all charges and late payment fees imposed and payable to a local authority are under the care and management of the local authority concerned. In this regard, application of the legislation in particular circumstances is a matter for the relevant local authority.