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The Committee on Budgetary Oversights calls for LPT measures

Sep 18, 2019
The Committee on Budgetary Oversight has called for measures which will protect the stability of the local property tax (LPT) revenue, while minimising the exposure of residential property owners to possible increases in the valuation of their properties.

In advance of the proposed November 1 revaluation date, an inter-departmental group was established to examine LPT in the context of property price developments. The Minister for Finance has postponed the revaluation process to allow for further consultation. The next revaluation date is now November 1, 2020. 

The Committee’s report noted that the Minister for Finance has deferred the revaluation process on two occasions to date, and that this approach is not in line with the recommendations of the Inter-Departmental Review Group. 

The Committee’s report explored the scenarios for revaluation in detail, and made recommendations as a means to future-proof the LPT system from the volatility of property prices. 

The Committee report also recommends that consideration be given to increasing the deferral income threshold from €15,000 to €18,000 for a single person, and from €25,000 to €30,000 for a couple.

Exemptions

The Committee endorses the recommendation made by the Review Group to remove the exemptions currently in place for unsold trading stock of builders/developers in May 2013 or properties sold by them between January 2013 and October 2019, and properties purchased by “first-time buyers” in the period between January 2013 and October 2013. The Committee also endorses the recommendation to regularly review all exemptions and to keep the range of exemptions to a minimum.  This will help to maintain a broad revenue base and reduce inequalities.

(Source: Oireachtas.ie)