For the first time since it was launched in 2013, the Local Property Tax (LPT) system is changing, and citizens are obliged to value their properties to set a new rate for the next four years.
Although house prices have soared since the last valuations were brought in eight years ago, the Department of Finance estimates just over half of property owners will see no change in the amount of annual LPT they pay under the revised system. It is expected that more than a third of home owners will face a higher tax bill, while a further one in 10 will see their rate reduce.
When is the deadline to submit a property valuation?
The deadline for submitting a new valuation is November 7th. However, if this is missed homeowners must still file a valuation after this date.
Revenue has begun issuing letters to homeowners requesting they establish the market value of their properties. In the correspondence, Revenue sets out an estimated local property tax liability, which will be replaced when the recipient provides a self-assessed property valuation as part of their LPT return.
If a person does not submit a return by November 7th, Revenue will collect the estimated amount and then continue to seek submission of a self-assessed valuation, which the owner is obliged to submit.
How do I go about valuing my property?
Revenue is seeking the value of a property as of November 1st, 2021, with this to apply for the years 2022 to 2025. The process does not require individuals to seek their own professional valuer, although this is an option that may be appropriate if a property is teetering between price bands.
Most people will likely be guided by the options set out on Revenue’s Residential Property Price Register on Revenue.ie. Users are asked to enter their Eircode to find their home on an interactive map, which will then offer a price band for that address.
Revenue will also accept valuations arrived at using information sources such as newspapers, local estate agents, or property sales websites such as myhome.ie or daft.ie. Owners should use information about properties in the local area that are similar in size and approximate age to their own. Any documentation used for the valuation should be kept in case Revenue requests it later.
For comparison, you may also wish to check your previous LPT rate, which can be found at Revenue’s MyAccount.
What if I undervalue my property?
It has been discovered that Revenue’s online tool contains a number of discrepancies, including valuation differences of up to €87,000 applying to similar houses in some Dublin neighbourhoods, and in some cases on the same street. The Revenue Commissioners has said it will not contest people who value their properties one band lower than its own guidance in the online tool.
However, Revenue will review self-assessments and challenge those it disagrees with. You can amend your LPT return after November 7th if you realise you have under or over-valued your property or realise you were eligible for an exemption.
What are the LPT price bands?
There are 20 price bands in the new LPT system that will apply from January 1st 2022. The lowest band covers houses worth between €100,000 to €200,000, in which owners will be charged an annual basic rate fee of €90.
People with homes of between €363,501 to €350,000 will pay €315 per annum as a basic rate, while those in the band above, with houses worth up to €437,500, will be charged a basic rate of €405. At the high end of the market, people with homes valued at more than €1.75 million will pay at least €2,830 each year.
Am I eligible for an exemption?
Even if your property is eligible for an exemption you are still required to submit a valuation to Revenue. Homes confirmed to be affected by pyrite, mica or other defective concrete blocks are eligible for exemptions, as are properties adapted for a person with a disability.
First-time buyers and new homes bought since 2013 – two groups which were previously exempt – will also be liable for the tax in a move that will bring more than 100,000 homes into the LPT system.
While any accompanying garden, driveway, garage or greenhouse should form a part of the overall property valuation, adjoining farmland or farm animal sheds do not have to be valued with a residential property.
How do I pay my local property tax?
Property owners will need their property ID, PIN (which are included in Revenue-issued LPT letters) and Personal Public Service Number (PPSN) or Tax Reference Number.
Payments can be made in one annual lump sum or in instalments. Payment options include direct debit, credit card or at source. If you have already been paying LPT, you can automatically carry forward this method to 2022.
If filling your tax by paper return, you will be able to have the amount deducted from your wages, occupational pension or other certain payments from the Department of Social Protection and Department of Agriculture. You will also be able to make cash payments through An Post or pay by cheque.
I am still confused!
Revenue has further details on its website, and it has also established an LPT helpline at 01 738 3626. You will need to be able to quote your PPSN, Property ID and PIN.