How will the introduction of the Local Property Tax (LPT) affect you?

The Minister for Finance,Michael Noonan published the Finance (Local Property Tax) (Amendment) Bill 2013 on February 13th. Following this, the Revenue has now published a Sample Form LPT1 – Return for LocalProperty Tax and a set of Guidelines for the LPT

The property tax will comeinto effect from 01st July 2013. It will be a tax that is due on themarket value of any residential property. For 2013 a half yearly charge will apply. This is a self assessed tax and the revenue collected will be used to fund the provision of local services administrated by Local Authorities.

The Actdefines a residential property as a building or structure which may be used as a dwelling; it will include sheds, outhouses and any other building or structure including grounds up to one acre.

Residentialproperty owners will receive correspondence from Revenue in March 2013 which will include a booklet detailing information on the operation of the local property tax. The booklet it will offer guidance on determining the valuation of a residential property, computing the amount of LPT to be paid, completing the LPT return form and the methods of payment available. The  information booklet will be easy to understand and should outline any queries individuals might have.

Valuation

The Marchcorrespondence from Revenue will provide details for the assessment of the valuation of the residential property. It must be noted that Revenue will not assess the valuation of properties. However should you follow their guidelines honestly they will accept the property value assessment. The valuation of your property will remain the same for 2013, 2014, 2015, 2016.

Rates

The amount due will be based on the market value of aproperty on 1st May 2013.

Property values will be set-up in market value bands.  The rate will be 0.18% for properties up to amarket value of €1 million. A table outlining the rate bands can be found at www.revenue.ie   

Revenue has provided an online calculator to assist  in the calculation of the amount of tax to bepayed in 2013. http://www.revenue.ie/lpt_reckoner/index_en.html

Payement Options

The optionsavailable will be one single payment or to spread payments in equal instalments from 01/07/2013 to the end of the year.

The optionsavailable for payment in one single payment will include:

Debit/CreditCards, Cash payments through certain service providers and Bank Single Debit Authority.

For theoption to spread the payments in equal instalments:

DirectDebit, Deduction from salary, Cash payments through certain providers, Deduction from social welfare payments and finally deduction from certain scheme payments to farmers.

Dates for your diary           

 February 2013                              Revenueissued LPT Return form with relevant information                   
01st May2013PropertyValuation and Ownership date
07th May 2013
Date forfiling paper LPT returns
28th May 2013Date forfiling LPT returns online
01st July 2013 onwards
Deduction at sourcefrom salary   
01st July 2013 
Cashpayments available
15th July 2013 
Deductionby direct debit
21st July 2013Bank SingleDebit Authority Payment deducted

 

Contact OSK Tax with your comments or queries.

 

 

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