Here are the key features of the Local Property Tax (LPT), as outlined by Revenue Chairman Josephine Feehily yesterday:
The LPT Basics
The Local Property Tax is a self-assessed tax. The charge for 2013 is based on each property’s market value on 1 May this year.
Property values are arranged into bands – from €0 to €100,000 and then in €50,000 bands.
Your tax liability is calculated at 0.18% of the mid-point of the relevant band, eg on a property valued between €200,000 & €250,000, the charge will be €225,000 * 0.18% = €405.
50% of this sum is payable this year. The full amount will be payable each year from 2014 onwards.
The 1 May 2013 valuation will apply up to and including 2016. This will hold regardless of improvements, extensions, repairs or property market movements in the meantime.
The Local Property Tax Register
Revenue have compiled a register of residential properties and their owners. They freely acknowledge that this will inevitably contain errors.
Individuals who receive letters in error should contact Revenue immediately so they can correct the register. If no contact is made, further letters, and enforcement, will issue.
It is up to the property owner to decide the market value of their property.
Revenue suggest that each property owner can assess their property’s value by using the official Property Price Register, or by accessing data from local estate agents etc.
They will also publish an online interactive guide providing indicative property values for different property types e.g. detached, semi-detached, apartment, etc. based on the age of the property, and average prices in each Electoral District.
However if a property has unique features, ie , is smaller or larger than average, is in a poor state of repair or has exceptional features, these should be considered in assessing its value.
Submitting the LPT Return
LPT returns can be completed and submitted online or on paper. The deadline for paper returns is 7 May and for electronic returns is 28 May.
If you own multiple residential properties, or if you are already obliged to file your tax returns online, you must file your LPT return online.
Paying the LPT
The following payment options are available:
- Single Debit Authority; (debited on 21 July)
- Deduction at source from a salary or occupational pension;
- Deduction at source from Department of Social Protection or Department of Agriculture payments.
- Direct Debit (debited from 15 July)
- Debit/Credit Card online;
- Cash payments and over the counter Debit/Credit Card payments via An Post, Payzone or Omnivend.
The Revenue Estimate
Every property owner will receive a Revenue Estimate. This is the amount Revenue will collect if no LPT return is filed. However, the valuation remains the sole responsibility of the property owner. Once you file an LPT return, the Revenue estimate becomes irrelevant.
What will happen non-filers?
Revenue will pursue non-filers to collect the Revenue Estimate.
Self-assessed taxpayers who haven’t filed their LPT Return will also incur an automatic late filing surcharge on their income tax return. This means their income tax liability will increase by a further 5%-10% of their liability.
It will also be impossible to receive a tax clearance certificate if your LPT Return and payment are overdue.
For more information, you can refer to the Revenue Local Property Tax Guide and Frequently Asked Questions
Local Citizens Information Centres can also advise on the tax, or you can contact Revenue’s LPT Helpline on 01 7023050 (or the more expensive 1890 200 255). Aertel page 593 also outlines information on the Local Property Tax.
Yesterday’s Local Property Tax Statement by Revenue Chairman Josephine Feehily is here.