Dáil Éireann Debate, Wednesday - 20 January 2016
54. Deputy Tom Fleming asked the Minister for Finance when property tax is due on a newly-built house inhabited by a family (details supplied) in County Kerry in January 2016 which was uninhabitable before that date; and if he will make a statement on the matter. [2451/16]
Amharc ar fhreagraI am advised by Revenue that any property that is in use as, or that is suitable for use as, a dwelling house is subject to Local Property Tax (LPT).
For LPT purposes, the state of dereliction of a property is not relevant where it (the property) is actually occupied as a dwelling house. However, a property that is derelict to such an extent that it is not suitable for occupation (and not actually occupied) is not taxable.
While it is not possible to provide a prescriptive set of criterion for derelict properties, Revenue advises property owners as a general rule to take account of the structure of the building including whether it has a roof, windows and sanitary facilities. However the lack of utilities such as water or electricity does not necessarily mean a residential property can be regarded as derelict.
Because LPT is a self-assessed tax, it is up to the property owner to calculate the correct valuation/liability for the property or decide that it is not liable on the basis of being derelict or uninhabitable. Where a property owner considers that a property is uninhabitable the onus is on him/her to inform Revenue in this regard and supporting documentation to back up this opinion may be requested.
Where a derelict property is subsequently renovated to a habitable level, it becomes a 'relevant residential' property for LPT and is liable from the following 'valuation period'. For example, if a property is renovated between 1 May 2013 and 1 November 2019 (the current 'valuation period') then it becomes liable for LPT from 1 January 2020 onwards.
In regard to the specific case mentioned by the Deputy, the persons in question filed the statutory LPT Return in 2013 and have made payments as required for the various tax years since. Revenue has no record of any queries or contacts from the persons in regard to the status of the property for LPT purposes.
Revenue has confirmed to me that it is making direct contact with the persons to discuss the issue and to clarify the habitable status of the property at the valuation date, i.e. 1 May 2013.
