Budgetary Oversight Committee to discuss property tax re-valuation and commercial stamp duty with Revenue

The agenda for tomorrow’s meeting is:

1.    Local Property Tax Re-valuation [Revenue Commissioners].
2.    Commercial Stamp Duty [Revenue Commissioners].

The Committee on Budgetary Oversight raised the issue of the Local Property Tax revaluation in September 2017, as an important issue that needs to be clarified for householders.

Committee Vice Chair John Lahart said: “The Local Property Tax was introduced in 2013, and was the largest extension of self-assessment in the history of the State. The second valuation was due in November 2016, but a decision was taken to freeze LPT valuations until November 2019. This means that property owners are still paying LPT based on 2013 prices. The Thornhill report highlighted the fact that outdated valuations is not sustainable. It also emphasised the need to plan any changes to the valuation process well in advance.  

During the housing crash, Irish house prices were badly affected, falling by 54 per cent between 2007 and 2013.  However, since 2013, prices have increased nationally by 50 per cent, with no sign of price increases slowing down. It is important therefore that decisions on changes to this tax are planned well in advance so that there is no sudden ‘valuation shock’ for property owners.

However, both households and local authorities need clarity on this issue well in advance of the 2019 deadline so that budgets can be fixed, to ensure there is no sudden ‘valuation shock’, and so that householders can be prepared for any changes in their tax bills. Tomorrow, we will discuss this issue in greater detail with representatives from the Revenue Commissioners. Specifically we will want to know what work has been done to date in preparing for the revaluation given the increase in property prices.

In the second part of our meeting we will examine the issue of commercial stamp duty. Budget 2018 introduced a new, higher rate of stamp duty of 6%. The new measure has targeted revenue of €376m and, before we discuss this matter with officials from the Department of Finance in the New Year, we will be keen to discuss with revenue how this figure was arrived at and how it can be achieved.”

This meeting will start in Committee Room 3, Leinster House at 5pm on Tuesday, 12 December 2017. Committee proceedings can be viewed live here.

Committee proceedings can also be viewed on the move, through the Houses of the Oireachtas Smartphone App, available for Apple and Android devices.

Ends

Media Enquiries:

Ciaran Brennan,
Houses of the Oireachtas
Communications Unit
Leinster House
Dublin 2
P: +353 1 61 3903
M: +353 86 0496518
ciaran.brennan@oireachtas.ie

Further information on the Committee: https://beta.oireachtas.ie/en/committees/32/budgetary-oversight/