DUBLIN: The Irish Finance Department has launched a public consultation on the Local Property Tax (LPT), as part of a broader review of the tax.
The review was launched in January. The aim is to provide Finance Minister Paschal Donohoe with information on any possible measures he might recommend to the Government regarding the revenue yield from the LPT and the LPT’s contribution to the total tax take.
The purpose of the consultation process is to provide stakeholders and interested parties with an opportunity to submit their suggestions to the review process. The LPT review group will consider the submissions received in the context of their deliberations and will then report any recommendations to Donohoe.
A revaluation of property prices is due to take place in November 2019, which will be used to calculate LPT liabilities from 2020. Donohoe has said that any changes to property tax bills will be “moderate” and “affordable”.
The LPT is charged at 0.18 percent on the market value of properties worth up to EUR1m (USD1.2m), and at 0.25 percent on any excess value over EUR1m. Property values are organized into bands and the tax liability is calculated by applying the LPT rate to the midpoint of the relevant band. A “local decision factor” allows local authorities to vary the rate by up to 15 percent.
