Local Property Tax to undergo review

It will include a consultation for interested parties and individuals

Local Property Tax to undergo review

File photo

The Government has announced a review of the Local Property Tax (LPT).

Finance Minister Paschal Donohoe briefed the Government about the review on Tuesday.

It will include a consultation process for interested parties and individuals to submit their views on the future of the tax.

The review will start in February and will include an examination of outstanding recommendations from the 2015 Thornhill review of the LPT.

It will be conducted by a cross-departmental group, chaired by the Department of Finance.

This will also be made up of the Revenue Commissioners, and the Departments of Public Expenditure, Housing and Planning.

It is expected that the review will be completed at the end of August, and that the group will have a number of choices for consideration.

The Department of Finance said: "The purpose of the review will be to inform the minister in relation to any actions he may recommend to Government concerning the overall yield from LPT and its contribution to total tax revenue.

"The review will be informed by the desirability of achieving relative stability, both over the short and longer terms, in LPT payments of liable persons."

Commenting on the review, Minister Donohoe said: "Even though it would be 2020 before LPT liabilities would be affected by any property revaluations, it is important that the Government is able to make its position clear in relation to LPT in a timely way so that households will be aware of its plans for the tax in advance of the November 2019 revaluation date and the associated 2020 and beyond LPT liabilities."

Prices in the LPT at the moment are based on valuations made in 2013.

However with property prices rising since then, there are concerns households could face a much larger bill.

Additional reporting: Sean Defoe