Dáil Éireann Debate, Wednesday - 17 April 2019
64. Deputy Richard Boyd Barrett asked the Minister for Finance if he will provide a report on the local property tax review process undertaken by his Department; the reason for the deferral of changes; and if he will make a statement on the matter. [17791/19]
Amharc ar fhreagraA review of the local property tax was carried out by the Department of Finance in conjunction with the Departments of the Taoiseach, Housing, Planning and Local Government, Public Expenditure and Reform and the Revenue Commissioners. The terms of reference required that in conducting the review the review group was to have regard to the principle of achieving relative stability in the LPT payments of those liable for the tax and provide clear direction on the likely payments faced by households in 2020.
The review group was asked to look in particular at the impact on LPT liabilities of property price developments since the original valuation date of 1st May 2013. The review also included an examination of the outstanding recommendations of the 2015 Thornhill review of the Local Property Tax. A public consultation process was conducted as part of the review to enable all interested parties and individuals to submit their views on the future of the LPT.
The review focused on the impact of house price movements under a series of scenarios involving different rate and tax band structures. However, against a background of significant but geographically uneven increases in residential property price levels, I believe it is necessary to engage in further consultation in order to identify a scenario that would deliver on the condition I set that there should be relative stability for all taxpayers in their LPT liabilities and that any increases should be modest and affordable.
Having considered the findings of the review report, and as I announced on the 2nd of April, I have therefore decided to defer the valuation date from 1st November 2019 to 1st November 2020 and to submit the report to the Budget Oversight Committee (BOC) in the context of the recommendations in its report on LPT of 21 March 2018. The deferral of revaluation until November 2020 provides time and space for the BOC to consider the report of the inter-departmental review and to provide its views to me. Importantly, as a result of my decision, the LPT bills of those liable for the tax will not be increasing in 2020.
