An annual Local Property Tax (LPT) charged on all residential properties in the State came into effect in 2013. The LPT is collected by the Revenue Commissioners.
Submissions for the Local Property Tax (LPT) Adjustment Factor have now closed. Limerick City and County Council will meet in September 2020 to consider the setting of a local adjustment factor.
Who is liable to pay LPT?
If you own a residential property in the State, you are liable for payment of the tax. (This includes local authorities and social housing organisations).
Residential property is any building or structure (or part of a building) which is used as, or is suitable for use as, a dwelling and includes grounds of up to one acre. The LPT does not apply to development sites or farmland.
The tax payable is based on the market value of relevant properties. The LPT is a self-assessment tax so you calculate the tax due based on your own assessment of the market value of the property. Revenue does not value properties for LPT purposes but provides guidance on how to value your property – see ‘Valuing your property’ below.
Revenue offers a range of methods for paying the tax. You can opt to make one single payment or you can phase your payments in equal instalments. You can log in to the LPT On-line system to view your Local Property Tax record and to pay any arrears (using your PPSN, Property ID and PIN). You can also access LPT through Revenue's myAccount and ROS services.
Background to the Tax
In January 2012, the Government established an Inter-Departmental Group on Property Tax. This Group considered the design of a property tax to replace the Household Charge. The legislation governing the tax is Finance (Local Property Tax) Act 2012 as amended by the Finance (Local Property Tax) (Amendment) Act 2013 and consolidated in the Finance (Local Property Tax) Act 2012 (as amended).
Summary of LPT Valuation Procedure
During March 2013 Revenue wrote to residential property owners. This letter included an LPT Return form for completion, an explanatory booklet and a Revenue Estimate of LPT liability. The Revenue Estimate of LPT liability is not a valuation of a property nor should it be regarded as an accurate calculation of LPT liability. It is simply the amount that Revenue will collect from property owners if they do not submit their LPT return.
The explanatory booklet helped you to assess the value of your property and work out how much you will have to pay, complete the LPT Return form, and decide how pay your LPT. For more information visit the Revenue website click here, and for a sample completed LPT Return form click here.
You should have sent your completed LPT Return form back to Revenue by 7 May 2013 if submitting a paper form or by 28 May 2013 if submitting your return online through revenue.ie. A half-year payment was due in 2013, with a full-year payment due in 2014 and subsequent years.
The valuation of your property for LPT purposes on 1 May 2013 stays the same for 2013 and subsequent years (even if you make improvements to your property). The next valuation date is 1 November 2020 for Local Property Tax 2021.
The Local Adjustment Factor
Since 2015, local authorities can vary the basic LPT rate on residential properties in their administrative area. The basic rates of LPT are 0.18% and 0.25%. These rates can be increased or decreased by up to 15% (both rates must be adjusted by the same amount). This is referred to as the local adjustment factor.
The introduction of the local adjustment factor means that residential properties of the same value in different local authority areas may pay different amounts of LPT from 2015 on, depending on whether the local authority has applied a local adjustment factor or not.
If a local authority passes a resolution to vary the basic LPT rates of 0.18% and 0.25% for 2021, Revenue must have been notified of the local adjustment factor on or before 30 September 2020. The local authority must also publish a notice of the variation of LPT on its website and in at least one local newspaper. (Copy of this Notice of the passing of the resolution to vary the rate of local property tax for 2021 is available here.) Revenue then adjusts the LPT liability for residential properties within the local authority’s administrative area.
For example, if your house is valued under €100,000, you will have paid €90 Local Property Tax in 2014.If the Local Property Tax rate is increased by 15% you will pay €103.50 Local Property Tax in 2021 and if this rate is decreased by 15%, you will pay €76.50 Local Property Tax in 2021.
Local Property Tax Allocation 2020 – Limerick City and County Council
Local Property Tax (LPT) is now a key funding source for Local Government, replacing the General Purpose Grant funding allocation. The initial allocation under this funding heading was confirmed as €17,554,464. The basis of this funding is an allocation of 80% of the LPT collected from property owners in the city and county and retained by the Local Authority with the remaining 20% being paid into an equalisation fund from which payments are made to counties not achieving a level of funding equivalent to the 2013 General Purpose Grant (GPG) through their own LPT receipts.
The Local Government Reform Act 2014 and associated regulations permits the members of the Council to vary the rate by a maximum increase or decrease of 15%. The Council decided to adjust the LPT rate upwards by 15% for 2020, equating to an increase of €1.1m on the 2019 amount.
The 2020 allocation from the Local Property Tax and the calculation provided by the DHPLG on the basis of this allocation is set out in Table 1 below:
Table 1 - LPT Reconciliation
|Limerick City and County Council - 2020 LPT Allocation|
|LPT 20% to Equalisation Fund||(€3,146,388)|
|=> LPT 80% Retained Locally||€12,585,552|
|Distribution from Equalisation Fund||€4,968,911|
|Original LPT Allocation||€17,554,464|
|15% increase in LPT rate||€2,359,785|
|Revised LPT Allocation||€19,914,249|
The 7.5% LPT variation for 2019 of €1,177,602 has been allocated to provide additional resources for the delivery of the following services as follows in Table 2.
Table 2 - 2019 Allocation of Additional Resources - 7.5% Variation in LPT
|Svc||Service Description||LPT 7.5% Allocation 2019|
|B03 & B04||Own Resource element of Local & Regional Roads||€316k|
|B0601 & B0602||Traffic Management||€200k|
|F0301||Maintenance of Parks, Pitches & Open Spaces||€140k|
|D0501||Tourism Development & Promotion||€151k|
It is expected that the LPT variation for 2020, an increase of 7.5% on the 2019 levels, of €1.15m will be allocated to provide additional resources for the delivery of the following services.
Table 3 - 2020 Allocation of Additional Resources
|Service Description||LPT 7.5% Allocation 2020|
|Capital investment in new plant to deliver efficient local services||€400k|
|Urban & Rural Regeneration Fund||€550k|
If you are unhappy about the way in which Revenue has handled any aspect of your tax affairs you can contact the Office of the Ombudsman. The Ombudsman's staff examine complaints about the administrative actions of government departments and offices, including Revenue.
In general, because LPT is a self-assessed tax, formal appeals only arise in a small number of situations.
If you do not agree with a Revenue Estimate you can displace it by submitting a return with your own self-assessment.
Since Revenue has compiled a register of residential properties from various sources, there may be errors about ownership of some properties. If you got a LPT Return form and you do not consider yourself a liable person for that property you should notify Revenue in writing within 30 days of receiving the letter. You should include an explanation of why you do not consider yourself a liable person, the details of the person you think is the liable person (name, address and PPS Number) and supporting documentation. It is very important that you contact Revenue since if the error is not corrected you are liable to pay the tax. Revenue will use the information you supply to make a determination on whether you are a liable person. If you do not agree you can appeal this determination to the Appeal Commissioners.
If you disagree with Revenue on other matters (for example, whether the property is residential, the valuation or whether you can defer payment) and the matter cannot be resolved, Revenue will issue a formal Notice of Assessment or a formal decision on the matter to you. Your right to appeal to the Appeal Commissioners will be set out clearly on the notices. However, you must make a return and pay any tax due before you can appeal the Notice of assessment or any other Revenue decision.
Where to apply
The Revenue Commissioners
Local Property Tax (LPT) Branch
PO Box 1
Phone: +353 (0)1 7023049
Locall: 1890 200 255