Terence Flanagan
Ceist:176. Deputy Terence Flanagan asked the Minister for Finance his views regarding the local property tax (details supplied); and if he will make a statement on the matter. [30993/14]
Amharc ar fhreagraTuesday, 15 July 2014
Ceisteanna (176)
Freagraí scríofa
In accordance with the Finance (Local Property Tax) Act 2012 (as amended), the amount of Local Property Tax (LPT) due on a property is based on the valuation at 1 May 2013. The LPT regime is designed so that the initial valuation at 1 May 2013 will be valid up to and including 2016 and will not be affected by any increase in property prices during the period 2013 to 2016.
The Deputy will be aware that section 20 of the Finance (Local Property Tax) Act 2012 (as amended) allows elected members of a local authority to pass a formal resolution to vary the basic rate of LPT by up to 15% for their functional area, which may result in a lower LPT rate applying for 2015. This is referred to as the "local adjustment factor" (LAF) and the earliest year that this can apply is 2015. In determining the LAF, local authorities are required to take account of their income and expenditure projections for the coming year, their current financial position and the effect of the variation on the economy and taxpayers in their functional area. I am further advised that local authorities are required to notify Revenue on or before 30 September 2014 if they wish to vary the LPT rate that will apply in 2015.
As regards higher property values in Dublin, the market value of a residential property is related to the characteristics of the building itself, the site on which it is located, and the characteristics and amenities of the neighbourhood. There will be a relationship between the market value of a house and benefits to the owner in terms of enjoyment of the amenity value of the property. This is equitable to the extent that market value provides a measure of the value of a residential property to the owner, particularly in terms of its proximity to places of work and local amenities and facilities.
Market valuation or a variation thereof is a standard measure for property taxation internationally (for example, the domestic rates in Northern Ireland are based on the "capital assessed value" of the property). Property taxes based on a variant of market value are commonly used for local authority funding in many jurisdictions.