The revaluation date for Local Property Tax (LPT) has been deferred to November 2021, Fine Gael TD, Alan Farrell, has said.
Deputy Farrell said this decision means that taxpayers will not be faced with increased LPT bills for 2021.
Deputy Farrell said: “My Fine Gael colleague, Minister for Finance Paschal Donohoe, has confirmed that with the new valuation date there will be no change in LPT liabilities until 2022 at the earliest.
“The Minister has confirmed to me that he will be bringing forward proposals for primary legislation to implement the Programme for Government commitments on LPT in early 2021.
“These proposals will be designed to ensure fairness and that most homeowners will face no increase in their LPT liabilities.
“They will also bring new homes, which are currently exempt from the LPT or outside of the tax, into the taxation system. The Minister will also seek to promote the other policy objectives that should underpin the tax like protecting the overall LPT yield; maintaining the tax base with a small number of exemptions and upholding the progressivity of the tax,” Deputy Farrell said.
The Minister will advance legislative proposals early in 2021 to implement the commitments in the Programme for Government in relation to LPT, which are –
- To bring forward legislation for the LPT on the basis of fairness and that most homeowners will face no increase;
- To bring new homes, which are currently exempt from the LPT, into the taxation system, and that;
- All money collected locally will be retained within the county. This is to be done on the basis that that those counties with a lower LPT base are adjusted via an annual national equalisation fund paid from the Exchequer.
Commenting on the decision Minister Donohoe said: “In taking almost five months to conclude, the process to form a new Government took longer than any of us would have anticipated, our initial focus and priority has rightly been on dealing with the impact of the COVID-19 pandemic.
“As with many aspects of our economy, the pandemic has introduced volatility into the residential property market and I am also conscious of the need to allow sufficient time for the Revenue Commissioners to introduce the necessary changes to the LPT regime before any new valuation date. Consequently I have decided to defer the valuation date from 1st November 2020 to 1st November 2021. With this new valuation date, there will be no change in LPT liabilities until 2022 at the earliest”.