The Local Property Tax (LPT) is now a reality for all family homes in Ireland. This tax is based on the market value of your home with a half year payment due on 1st of July 2013 to the Revenue Commissioners, with a full year payment due in 2014.
The Revenue will send you an estimate of what they believe your LPT liability is. Remember this is only an estimate and will be the amount that Revenue will collect from you if you do not submit your return.
You must send your completed LPT Return form back to Revenue by 7 May 2013 if submitting a paper form or by 28 May 2013 if submitting your return online.
Your responsibility
The LPT is a self-assessment tax so you calculate the tax due based on your own assessment of the market value of the property. Do your research online and make a judgement on the value of your property if you were to sell it on the open market. Useful sites are daft.ie, myhome.ie and propertypriceregister.ie
Household Charge
The LPT replaces the household charge which has been abolished from 1 January 2013. Arrears will still be collect but this time it will be the Revenue who will collect all arrears. There are penalties for not paying the household charge and this will be applied to your property tax.
Exemptions
There are a number of ways to get exemption and the Revenue have a document on their site regarding exemptions. The one area that may be of interest to people with a disability is the exemptions for residential property that are purchased or adapted for use by an incapacitated individual. People who fall in to this category should do a bit more research to see can they avail of this exemption. You must still make a return and claim this exemption.
Payment
You can opt to defer your payment if your income is below a certain limit otherwise a half year payment will be due on 1st of July 2013.
Revenue offers a range of methods for paying the tax. You can make one single payment or you can phase your payments in equal instalments. Either way you have to pay the LPT at some stage.
Bands
| Valuation € |
Rate |
Property Tax for a full year |
2013 Property Tax |
| 0 – 100,000 |
0.18% |
90 |
45 |
| 100,001 – 150,000 |
0.18% |
225 |
112 |
| 150,001 – 200,000 |
0.18% |
315 |
157 |
| 200,001 – 250,000 |
0.18% |
405 |
202 |
| 250,001 – 300,000 |
0.18% |
495 |
247 |
| 300,001 – 350,000 |
0.18% |
585 |
292 |
| 350,001 – 400,000 |
0.18% |
675 |
337 |
| 400,001 – 450,000 |
0.18% |
765 |
382 |
| 450,001 – 500,000 |
0.18% |
855 |
427 |
| 500,001 – 550,000 |
0.18% |
945 |
472 |