Department of Finance of Ireland

11/25/2021 | Press release | Distributed by Public on 11/25/2021 08:41

Minister Donohoe welcomes the successful implementation of Local Property Tax (LPT) revaluation process

The Minister for Finance, Paschal Donohoe TD, has today (Thursday) welcomed the progress achieved by the Revenue Commissioners in implementing the revaluation of residential properties for the purposes of the Local Property Tax (LPT).

The Minister noted that Revenue had issued over 1.4 million notices to property owners in respect of nearly 2 million properties, setting out what was required to meet their LPT obligations for the new 'valuation period' 2022 to 2025. This included approximately 200,000 paper LPT returns, which were issued to property owners who had not previously availed of the online options and may not have been able to avail of, access or use the LPT online services.

The Minister also noted Revenue's comprehensive LPT media campaign which ran across local, urban and national radio stations as well as print, digital and social channels. The LPT media campaign highlighted the obligations for the new 'valuation period' and the assistance that was available to enable property owners to fulfil their LPT obligations. Revenue also actively engaged with various representative groups to further enhance the public communications campaign.

Revenue has today published updated provisional statistics in relation to the LPT returns made by homeowners. In summary, based on returns filed as at close of business on 24 November 2021 these show:

• LPT Returns in respect of over 1.57 million properties treated as filed

• This representing approximately 79% of the expected number of properties liable for LPT for 2022

• There is an overall payment compliance rate of 89% due to the fact that payment arrangements for properties where returns have yet to be filed

• 89% of returns were filed online

o Exemptions claimed for 13,800 properties

o Deferrals claimed for 9,700 properties

o Payment Methods chosen were: Annual or Monthly Direct Debit (49.1%), Credit or Debit Card (28%),

  • Deduction at Source (11%), Service Provider (10.7%), Cheque or Cash (1.3%)

• LPT of €428 million has effectively been secured for 2022 already. (Yield for 2020 was approx. €480 million)

Commenting on the figures Minister Donohoe said:

"I want to acknowledge the professionalism and commitment Revenue staff have shown in implementing this significant change involving around 2 million homes. It is gratifying to see the positive response from taxpayers in relation to their LPT obligations. I would urge property owners who have not yet filed their LPT return to do so now. The quickest and easiest way to do this is online using myAccount, ROS or the LPT online portal, all of which can be accessed via the Revenue website. I look forward to receiving a detailed analysis of the LPT returns in due course from Revenue.

This revaluation of properties is a significant element in the implementation of the Programme for Government commitment to bring forward legislation in relation to the Local Property Tax on the basis of fairness and that most homeowners would face no increase in their LPT liability. The Finance (Local Property Tax) (Amendment) Act 2021, which I brought through the Houses of the Oireachtas during the summer, provides the statutory basis for these changes."

Notes for editors:

LPT proceeds collected by the Revenue Commissioners are subsequently transferred to the Local Government Fund. LPT helps to fund services such as public parks, libraries, open spaces and leisure amenities; planning and development; fire and emergency services; maintenance and cleaning of streets and street lighting - all of which benefit citizens directly.

The LPT yield for 2020 was approximately €480 million, once the Local Adjustment Factor decisions of Local Authorities were taken into account. The yield forecasts for 2022 will be reviewed once the returns filed are processed and analysed. However, Revenue statistics show that, as thing stands, LPT of €428 million has effectively been secured for 2022 already.

Preliminary analysis by Revenue indicates that the property owners who have not yet submitted their LPT Return mainly fall into two distinct categories:

1. Property owners with recurring payment arrangements in place. Annual or Monthly Direct Debit, deduction at source (from salary, wages, occupational pension, Department of Social Protection payment or Department of Agriculture, Food and the Marine payment). While these recurring payment methods will continue to apply for 2022, property owners have not met their legal obligation until they submit their LPT return.

2. Property owners with no recurring payment arrangement in place. These property owners have not met their LPT obligations for 2022 and are required to submit their LPT Return now and pay or make arrangements to pay their LPT liability for 2022 as soon as possible but no later than 12 January 2022.