LPT - Local Property Tax
A Local Property Tax (LPT), charged on all residential properties in the State, will come into effect in 2013. A half year payment will be due in 2013, with a full year payment due in 2014. The LPT will be collected by the Revenue Commissioners.
All owners of residential property, including rental properties, are liable to pay the tax. You are a liable person for the Local Property Tax if you own a residential property on the liability (or ownership) date. The liability date is 1 May 2013 for the year 2013 and, for following years, 1st November in the preceding year. So for 2014 the liability date is 1st November 2013.
The tax will be based on the chargeable value of a residential property on the valuation date. The chargeable value is defined as the market value that the property could reasonably be expected to fetch in sale on the open market on the valuation date. Valuation will be by self-assessment in 2013 and these self-assessed valuations will be used until the end of 2016 (this means that the valuation in 2013 will apply for 3 ½ years).
Revenue will issue residential property owners with an estimate of their property tax. Owners must submit a return, either manually or online (online only for multiple property owners). If you do not submit a Local Property Tax return with your self-assessment of the LPT payable, the Revenue Estimate will become due and payable. The Revenue Estimate is automatically displaced when you submit a return with your self-assessed amount.
The Local Property Tax is based on market value bands. The first band will cover all properties worth up to €100,000. Bands then go up in multiples of €50,000. If a property is valued at €1 million or lower, the tax will be based on the mid-point of the relevant band at a rate of 0.18%. For properties valued over €1 million the tax will be charged at 0.18% on the first €1 million of value and 0.25% on any balance in excess of €1 million, with no banding applied.
You must send your completed LPT Return form back to Revenue by 7 May 2013 if you are filing a paper form. If you file your LPT Return form electronically you will have until 28 May 2013 to file it online through revenue.ie.
The return you submit in 2013 will be valid for the years 2013 to 2016 unless your circumstances change or you wish to select an alternative payment method.