HOME

TheInfoList



OR:

The local property tax (LPT) is annual self-assessed tax charged on the market value of all residential properties in Ireland. It came into effect on 1 July 2013 and is collected by the
Revenue Commissioners The Revenue Commissioners (), commonly called Revenue, is the Irish Government agency responsible for customs, excise, taxation and related matters. Though Revenue can trace itself back to predecessors (with the Act of Union 1800 amalgamating ...
. The tax is assessed on residential properties. The owner of a property is liable (though in the case of leases over twenty years, the tenant becomes liable). The revenue raised is used to fund the provision of services by
local authorities Local government is a generic term for the lowest tiers of governance or public administration within a particular sovereign state. Local governments typically constitute a subdivision of a higher-level political or administrative unit, such a ...
and includes transfers between local authorities.


Valuation and rates

The tax is based upon the assessed market value of the property in May 2013. This valuation is to be used as the basis for a half-year payment in 2013, as well as 3 further full year payments in 2014, 2015 and 2016. The tax due is calculated via a system of market bands. The initial national central rate of the tax is 0.18% of a property's value up to €1 million, and in the case of properties valued over €1 million, 0.25% on the balance. From 1 January 2015, local authorities will be able to vary LPT rates -/+ 15% of the national central rate. In the case of properties valued over €1 million, no banding applies – 0.18% is charged on the first €1 million (€1,800) and 0.25% on the balance. The government estimates that 85% to 90% of all properties falls within the first five taxation bands.


Exemptions

If some conditions are met, certain properties are exempt from LPT. Each exemption has its own set of qualifications. These types of properties may be exempt from Local Property Tax (LPT): - Properties that have been certified as having significant pyrite damage - Properties constructed with faulty concrete blocks - Residential properties owned by a charitable organization or a public body - Nursing homes that are licensed - Commercial real estate - Properties that have been vacated by their owners due to illness - Property purchased, constructed, or adapted for a person who is permanently and completely disabled - Properties used as residential accommodation by charitable organizations In order to claim an exemption as part of your LPT Return, you must provide certain information, such as your name, PPSN, property ID, and property address. Additionally, some exemptions may require you to submit supporting documentation to Revenue. To claim an exemption for the years 2023 to 2025, even if you missed claiming it for 2022, you can reach out to the LPT branch in Revenue. If you have already submitted an LPT Return without claiming an exemption, you should contact Revenue again.


Payment

On 6 May 2013, the Revenue Commissioners reported that 1.2 m household lds (74%) have paid the property tax. In August 2013, the Revenue said 1.58 m households have paid the tax, and over €175 m has been collected. Anyone who still has not paid by August 2013, will have the tax deducted from their salary or pension.


Previous property taxes


Household charge

The household charge was introduced by the ''Local Government (Household Charge) Act 2011'', for collection in 2012. It was a flat-rate charge of €100 on each principal private residence, and acted as a precursor for the local property tax.


Non-principal private residence charge

The non-principal private residence charge was introduced by the ''Local Government (Charges) Act 2009'', for collection from 2009 to 2012. It was a flat-rate charge of €200, that was payable respect of residential property that was not the owner's only or main residence.


Residential property tax

The residential property tax was introduced in the ''Finance Act 1983'' and was abolished on 5 April 1997. It was an annual tax, charged at the rate of 1.5% per annum on the portion of the market value of an owner-occupied house which was greater than (in 1996) £101,000, as long as the household income exceeded £30,100. Exemption from the RPT was possible if certain buildings were open to the public. This means that the exemption from RPT was possible in the case of property such as
Charles Haughey Charles James Haughey (; 16 September 1925 – 13 June 2006) was an Irish Fianna Fáil politician who led four governments as Taoiseach: December 1979 to June 1981, March to December 1982, March 1987 to June 1989, and June 1989 to February 1992 ...
's
Kinsealy Kinsealy (officially Kinsaley; ) is an outer suburb of Dublin in Fingal, Ireland. Kinsealy is on the Northside (Dublin), northside of the city, about 13 km from the city centre, on the Malahide Road, in the green belt between the suburbs of ...
mansion—partially open for the Irish Cancer Society's Daffodil Day.


Rates

Prior to 1977, all property owners in Ireland had to pay "
rates Rate or rates may refer to: Finance * Rate (company), an American residential mortgage company formerly known as Guaranteed Rate * Rates (tax), a type of taxation system in the United Kingdom used to fund local government * Exchange rate, rate ...
" – based on the "rateable valuation" of the property – to the local council. Rates were used by local authorities to provide services such as mains water and refuse collection. Rates for private residences were abolished in 1977, with local authorities instead receiving funding from central government. They continue in operation for commercial property. Refuse collection services are no longer operated or funded by local authorities in Ireland.


See also

*
Hearth tax A hearth tax was a property tax in certain countries during the medieval and early modern period, levied on each hearth, thus by proxy on wealth. It was calculated based on the number of hearths, or fireplaces, within a municipal area and is con ...


References

{{Reflist


External links


Revenue Commissioners – Local Property Tax
2013 establishments in Ireland Post-2008 Irish economic downturn Taxation in the Republic of Ireland