Dáil Éireann Debate, Tuesday - 16 April 2013
232. Deputy Michael McGrath asked the Minister for Finance if, in relation to the definition of the chargeable value of a property in the Finance (Local Property Tax) Act 2012, in arriving at a valuation, any consideration can be given to an encumbrance on the property, for example. if persond other than the property owner have a legal right of residence for the remainder of their life; and if he will make a statement on the matter. [16213/13]
Amharc ar fhreagraThe Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered and how a residential property is to be valued for Local Property Tax (LPT) purposes. I am informed by the Revenue Commissioners that LPT is a self-assessed tax so in the first instance it is a matter for the property owner to calculate the tax due based on his or her assessment of the chargeable value of the property. The chargeable value is defined in the 2012 Act and means the price that the unencumbered fee simple of a residential property might be expected to fetch on a sale on the open market were that property to be sold on the valuation date of 1 May 2013, in a manner that would secure the best possible price for the property. Therefore, in assessing the market value of a residential property no account may be taken of any encumbrance on the property.
The 2012 Act also 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. I would like to clarify that where an individual has a long-term right of residence (for life or for 20 years or more) that entitles him or her to exclude any other person from the property, he or she would be considered to be the liable person in respect of the property. Consequently, in the example you have provided, it would appear that the person with the right of residence for the remainder of his or her life may be the liable person for the residential property in question.
