Dáil Éireann Debate, Tuesday - 15 January 2019
248. Deputy Róisín Shortall asked the Minister for Finance his views on providing relief for local property tax for older persons who are paying very expensive nursing home fees for their spouses under the fair deal scheme; and if he will make a statement on the matter. [1538/19]
Amharc ar fhreagra249. Deputy Róisín Shortall asked the Minister for Finance his views on providing relief for local property tax for older persons who are paying expensive nursing home fees for their spouses under the fair deal scheme; and if he will make a statement on the matter. [1554/19]
Amharc ar fhreagraI propose to take Questions Nos. 248 and 249 together.
The 2012 inter-Departmental Group which considered the structures and modalities of a property tax recommended that a universal liability to the Local Property Tax (LPT) should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. While there is no specific exemption from the requirement to pay LPT for persons as described in the deputy's questions, such persons may be entitled to an exemption on other grounds or may qualify for a deferral subject to meeting the qualifying conditions.
Part 12 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a system of deferral arrangements for owner-occupiers where there is an inability to pay the tax and the person meets certain criteria based on income thresholds. These deferral arrangements also take account of mortgage interest payments made by the property owner.
The property must be the sole or main residence of the liable person and his or her gross income must be below certain thresholds. The thresholds are €15,000 for a single person and €25,000 for a married couple, civil partners or cohabiting couple. Deferral in respect of half of the local property tax payable is possible, where the gross income is above the threshold but less than €25,000 in the case of a single person and €35,000 in the case of a couple.
Homeowners may also be able to claim a deferral on hardship grounds if they have suffered a significant unexpected and unavoidable financial loss or expense in the current year and as a result are unable to pay their LPT liabilities without causing excessive financial hardship.
My department is currently finalising a review of the LPT in conjunction with the Departments of the Taoiseach, Public Expenditure and Reform, Housing Planning and Local Government, and the Office of the Revenue Commissioners. The review is looking in particular at the impact on LPT liabilities of property price developments. In that regard the review will be informed by the desirability of achieving relative stability, both over the short and longer terms, in LPT payments of those liable for the tax and provide clear direction on the likely payments faced by households in 2020. I will of course carefully consider the conclusions and recommendations of the report when it is presented to me.
