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Revenue will 'double-check' homes aren't undervalued for Local Property Tax - Donohoe

Revenue will "double-check" property valuations under the new Local Property Tax system to ensure...
Stephen McNeice
Stephen McNeice

09.38 3 Jun 2021


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Revenue will 'double-check' ho...

Revenue will 'double-check' homes aren't undervalued for Local Property Tax - Donohoe

Stephen McNeice
Stephen McNeice

09.38 3 Jun 2021


Share this article


Revenue will "double-check" property valuations under the new Local Property Tax system to ensure the homes aren't undervalued, the Finance Minister has said.

However, Paschal Donohoe said he believes the "overwhelming majority" of people do their best to value their homes themselves.

This week has seen the Government announce a range of changes to the LPT.

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Homes will be revalued on November 1st, and it's expected that around one-third of homeowners will see their bills increasing by around €90-100.

Homes built since 2013 will also be eligible for the tax for the first time.

Valuation of a home (which determines how much LPT a household has to pay) is something that will be done by homeowners themselves, but reports have indicated Revenue will check valuations to ensure the homes aren't undervalued.

On Newstalk Breakfast, Minister Donohoe said this is something that's happened under the current LPT regime as well.

He said: “In 2015, the Revenue Commissioner did contact property owners if they had concerns regarding properties looking really undervalued.

“Under the current tax, after a few years the Revenue Commissioner did begin to double-check. That will happen again… but the evidence we have is of compliance and people doing their best to self-declare.”

He noted that Revenue compares valuations of properties versus the price of a property when sold.

Opposition parties have raised concerns about the proposed LPT increase.

People Before Profit says the tax hits people "regardless of income", and there should be a wealth tax put in place instead.

Asked about these objections, Minister Donohoe said: “I’m well used to the opposition that parties in the far-left have to any form of taxes.

"The parties of the far-left want us to do more to tackle the climate crisis, but they’re against any changes in carbon tax. They want us to do more on housing but are against any changes in Local Property Tax.

“It’s the kind of politics that’s against everything and for nothing.”

Minister Donohoe said a majority of people will not see an increase to their LPT bill - adding that he knows tax increases will cause difficulty for some, but the Government has 'done all it can' to ensure the changes are affordable.

Main image: Split-screen image of Revenue offices (left) and Finance Minister Paschal Donohoe (right). Picture: RollingNews.ie

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