Dáil Éireann Debate, Wednesday - 6 April 2022
35. Deputy Patricia Ryan asked the Minister for Finance if he will introduce reforms to allow anyone who is solely reliant on the State pension to defer payment of the local property tax until the sale of their property; and if he will make a statement on the matter. [18543/22]
Amharc ar fhreagraThe Local Property Tax (‘LPT’) legislation provides for the possibility of deferring the charge to LPT in certain circumstances to assist individuals who may have difficulty paying the tax. The property must be the sole or main residence of the liable person and his or her gross income must be below certain thresholds. A qualifying person may opt to defer, or partially defer, payment of the tax. The deferred LPT remains a charge on the property until it is paid. Property owners claiming a deferral are still required to submit their LPT return for each valuation period and include the deferral claim in the return. Where a person qualifies for a full deferral then 100 per cent of the liability can be deferred. Where a person qualifies for partial deferral, then 50 per cent of the liability can be deferred. Where payment is deferred, interest accrues on the unpaid amount until it is paid (currently 3% per year).
The Finance (Local Property Tax) (Amendment) Act 2021 provides that for the 2022-2025 valuation period the deferral thresholds will be €18,000 for a single owner and €30,000 for a couple. Deferral in respect of half of the LPT payable is possible, where the gross income is above the threshold but less than €30,000 in the case of a single person and €42,000 in the case of a couple. These threshold amounts are above the rates of payment for both non-contributory and contributory state pensions.
Further information and assistance in regard to the LPT deferral option is available via the Revenue LPT Helpline on 01-738 36 26. Revenue have published detailed guidance on LPT deferrals on their website.
