I received a letter from Revenue a few weeks ago about Local Property Tax and I have no idea what to do with it. What is it all this about? Do I need an exact valuation for my property from an auctioneer?
Local Property Tax (LPT ) is a tax we all pay on our homes. It was introduced in 2013 and back then we all placed values on our homes. Revenue is now asking us to update the value of our homes within their new bands. Auctioneer valuations are not necessary if you can reasonably determine the value of your home within the new bands.
There are 20 price bands in the new LPT system. The lowest band covers houses worth between €100,000 to €200,000, where owners will be charged an annual basic rate fee of €90. Band 2 covers houses valued between €200,001 to €262,500 where owners will pay €225 LPT. Band 3 covers houses valued between €262,501 to €350,000 where owners will pay €315 LPT. Band 4 covers houses valued between €350,000 to €437,500 where owners will pay €405 LPT. At the higher end of the market, people with homes valued at more than €1.75 million will pay at least €2,830 each year. Each Local Authority may adjust this basic rate and charge an extra amount, e.g., Roscommon and Longford County Councils have adjusted the basic rate by 15%.
Revenue letters issued to homeowners set out an estimated LPT. Homeowners will replace this estimate with their own property valuation (within the new LPT bands ) when they file their new LPT return.
The deadline for submitting a new valuation is November 7th. If a homeowner does not submit a return by November 7th, Revenue will collect their estimated LPT amount and will continue to seek submission of a self-assessed valuation, which the homeowner is obliged to submit.
Revenue Commissioners has indicated that it will not contest valuations one band lower than its own guidance in the online tool but will review self-assessments and challenge those it disagrees with.
Homes adapted for a person with a disability and also those homes confirmed to be affected by pyrite, mica or other defective concrete blocks are eligible for LPT exemptions. However, even if your property is eligible for an exemption, you are still required to submit a valuation to Revenue.
This column is prepared by Dolores Gacquin, solicitor. Byrne Carolan Cunningham has offices in Galway, Athlone, Moate, and Lanesboro. A person should always contact their solicitor to obtain legal advice specific to their own situation. This above column contains general advice and cannot be relied upon as legal advice. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.
Call Byrne Carolan Cunningham on (090 ) 6478433.
