The previous two articles have all been about the consequences and the context of the property tax. This one is just about how to pay it.
(1) Notices issued by the Revenue commissioners. The revenue commissioners will issue most houses with an estimate of the property tax. If you are happy with the value that they put on your house then just agree with their estimate and pay it. (i will detail payment options below).
(2) If you do not agree with the value that the revenue is putting on your house then you can fill out the form that they send you with the value that you feel is correct and pay this amount. Take a look at recent house sales (if there has been any) in your local area for similar houses and this will give you some guidance. The revenue have an online property value guide which is easy to use you just choose your county, type of house and if house was built before or after 2000. Then you click on your area on a map of Ireland and it gives you a value. Also if you go to https://lpt.revenue.ie/lpt-web/valuation-guide/index.htm and click the ok box on the side of the page you can get a list of properties sold in your area for last few year. Saying that the revenue do appear to have put fairly low values in the letters they are sending out.
(3) The paper LPT form is easy to fill out. Your name and address is filled out automatically by revenue when they send it to you and then you fill out the name of the person liable for the tax (this is essentially the person who owns the property at the 1 Novemebr of the preceding year or the 1 may 2013 for this year), your pps number then you can mark a box if the property is exempt or if it is not your principal private residece (you still have to pay the tax) and if you are non resident for income tax purposes (you still have to pay the tax). Then you enter the band number for the value of the property and the value you feel the property is worth and the amount of tax you need to pay (see below for how to calculate) . Then sign and if you are not the liable person then who are you i.e. their son or daughter etc. Enter your phone number and email address (if you have one). Finally you enter payment details by choosing one of the option available as detailed below.
(4) Online form this is essentially the same as the written form but with an additional option to pay by credit card or debit card.
(5) how to calculate your local property tax liability The tax for properties up to Euro 1 million in value is calculated at .18% of the mid point of certain bands. These are the bands and the amount of tax due. So to calculate the tas just decide what you feel is the value of your house and then find what band that value is in and then the tax across from this band is how much you owe in 2013
Valuation
Band Number Valuation Mid-Point LPT Charge in 2013 LPT Charge in 2014
Band Range of Valuation Band (€) Half year charge) (€) (full year charge) (€)
01 0 – 100,000 50,000 45 90
02 100,001 – 150,000 125,000 112 225
03 150,001 – 200,000 175,000 157 315
04 200,001 – 250,000 225,000 202 405
05 250,001 – 300,000 275,000 247 495
06 300,001 – 350,000 325,000 292 585
07 350,001 – 400,000 375,000 337 675
08 400,001 – 450,000 425,000 382 765
09 450,001 – 500,000 475,000 427 855
10 500,001 – 550,000 525,000 472 945
11 550,001 – 600,000 575,000 517 1,035
12 600,001 – 650,000 625,000 562 1,125
13 650,001 – 700,000 675,000 607 1,215
14 700,001 – 750,000 725,000 652 1,305
15 750,001 – 800,000 775,000 697 1,395
16 800,001 – 850,000 825,000 742 1,485
17 850,001 – 900,000 875,000 787 1,575
18 900,001 – 950,000 925,000 832 1,665
19 950,001 – 1,000,000 975,000 877 1,755
20 Value greater than €1m Assessed on the actual value as follows:
● at 0.18% on the value up to €1m
● at 0.25% on the portion above €1m
(6) Payment options are as follows
LPT can be paid in full by:
● Single Debit Authority - like an electronic cheque. To select this option complete the payslip on the
Return and payment will be deducted from your bank account no earlier than 21 July 2013.
● *Debit/Credit Card.
● *Cash payments (including debit/credit card) through approved Payment Service Providers.
LPT can be paid on a phased basis from 1 July 2013 by:
● Deduction at source from your salary or occupational pension.
● Deduction at source from certain payments received from the Department of Social Protection
(DSP) and scheme payments received from the Department of Agriculture, Food and the Marine
(DAFM). Deduction from a DSP payment cannot reduce your DSP personal rate payment to less
than €186 per week.
● *Direct Debit.
● *Cash payments (including debit/credit card) in equal installments through approved Payment
Service Providers.
(7) The following persons are liable to pay LPT:
● Owners of Irish residential property, regardless of whether they live in Ireland or not.
● Landlords where the property is rented under a short-term lease (for less than 20 years).
● Local authorities or social housing organizations that own and provide social housing.
● Lessees who hold long-term leases of residential property (for 20 years or more).
● Holders of a life-interest in a residential property.
● Persons with a long-term right of residence (for life or for 20 years or more) that entitles them to
exclude any other person from the property.
● Personal representatives of a deceased owner (e.g. executor/administrator of an estate).
● Trustees, where a property is held in a trust.
● Where none of the above categories of liable person applies, the person who occupies, or receives
rent from, the property is the liable person.
(8) You can defer the payment if you cant afford to pay and you meet the following criteria. The tax is attached to your property and will be deducted when you sell the property and interest is charges at 4% per year.
Full Deferral
(a) Gross income for the year is unlikely to exceed €15,000 (single or widow/er) and €25,000 (couple).
(b) Gross income* for the year is unlikely to exceed the adjusted income limit. This adjusted limit is calculated by increasing the thresholds of €15,000 (single or widow/er) and €25,000 (couple) by 80% of the expected gross mortgage interest payments for the year 2013.
Partial Deferral (you defer half of the amount due but pay the other half as per normal)
(c) Gross income* for the year is unlikely to exceed €25,000 (single or widow/er) and €35,000 (couple).
(d) Gross income* for the year is unlikely to exceed the adjusted income limit. This adjusted limit is calculated by increasing the thresholds of €25,000 (single or widow/er) and €35,000 (couple) by 80% of the expected gross mortgage interest payments for the year 2013.
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