The Local Property Tax (LPT) is an annual charge on all residential properties in Ireland which came into effect in 2013 and is collected by the Revenue Commissioners. The tax payable is based on the market value of your property but does not apply to development sites or farmland. The tax is a self-assessed tax and therefore you calculate the tax due based on your own assessment of the market value of the property.
The liability date was the 1st May 2013 for the year 2013 and for the following years it is the 1st November.
The valuation date for your property was the 1st May 2013 and this valuation lasts for a nine year period up to and including 2021. The Revenue Commissioners will accept your self-assessed property valuation but if they have reason to believe that their valuation guidance has not been followed, they may query your valuation.
If you purchased a property since the 1st January 2013 or if you are a first time buyer who purchased a property as your principal private residence since the 1st January 2013, you are exempt from the LPT for the years 2013 to 2021. However, you must still make a return to the Revenue Commissioners. The next valuation date will be on 1st November.
After you submitted the return to the Revenue Commissioners in 2013, you do not have to submit another return until the 7th November 2016. You will pay the LPT at the same rate every year up to and including 2016.
You can pay the LPT in a number of ways. You can pay in one single payment or alternatively you can pay the tax in equal instalments. The payment method you choose will apply for all subsequent years unless you inform the Revenue Commissioners that you wish to change your method of payment.
If you do not submit your return to the Revenue Commissioners, the Revenue Commissioners estimate of your tax liability will become payable by default and the Revenue Commissioners will collect the amount due by deduction at source (ie, a mandatory deduction from your salary) or an attachment order (ie, your employer to deduct the tax from your wages and pay it to the Revenue Commissioners).
If you are self employed and do not submit your return to the Revenue Commissioners, the Revenue Commissioners will collect the amount due by sheriff, court action or attachment order. If you fail to pay the LPT, the Revenue Commissioners will not issue you with a tax clearance certificate.
If the Revenue Commissioners does not collect the amount of LPT due, then a charge will be put on your property and you will not be able to sell your property without paying the tax together with interest and penalties where appropriate.