Parliamentary Question addressed to the Minister for Finance

To ask the Minister for Finance if refunds will be paid to homeowners where it comes to light that an overpayment of property tax was paid in any year; and if he will make a statement on the matter.

Reply

Minister for Finance ( Michael Noonan):

I am informed by the Revenue Commissioners that Local Property Tax (LPT) is a self-assessed tax so in the first instance it is a matter for the property owner to calculate the tax due based on his or her assessment of the market value of the property. For the purposes of LPT, property values for properties under €1 million are organised into valuation bands, with a range of €50,000 in each band. As property owners will not be required to provide a precise value for their property, it is unlikely that any owner would find themselves in the position where they overpay their LPT. The initial valuation of a property on 1 May 2013, assuming it is made in good faith, will be valid up to and including 2016 and will not be affected by any increase or decrease in property prices or other changes, during this period.

Notwithstanding this, I am advised by the Commissioners that section 26 of the 2012 Act provides for a refund to issue where it transpires that there has been an overpayment of LPT either directly or by deduction at source, or where, the overpayment was due to an error or mistake on a return or a statement made by the liable person, subject to certain conditions being satisfied. Where a true and complete return has been prepared and delivered to the Revenue Commissioners and all the information required by the Commissioners to make a determination on the case has been provided, a refund may issue where a claim for repayment is submitted to Revenue within four years after the end of the year in which the liability date in respect of the payment was made falls. For example, if a liable person elects on the LPT Return to pay the 2013 LPT liability by deduction at source from his or her salary, but their spouse subsequently pays part of the liability by cash, this would result in an overpayment of LPT for 2013. In order to receive a refund, the liable person must submit a claim for repayment of the LPT to Revenue by the end of 2017 and provide the necessary information to support the claim. It should be noted that a refund of tax will only be made where the taxpayer has no other outstanding tax liabilities.

I am further advised by Revenue that the legislation also allows a liable person to appeal against a decision of the Revenue Commissioners not to allow a repayment.