Finance (Local Property Tax) (Amendment) Act 2013

1. Definition.

1.— In this Act “Principal Act” means the Finance (Local Property Tax) Act 2012.

2. Exempt properties.

2.— The Principal Act is amended—

(a) in section 7(1) by inserting “and section 7A” (inserted by the Finance (Local Property Tax) (Amendment) Act 2013) after “In this section”,

(b) in section 7(2) by substituting “the liable person in relation to the property is” for “the property is owned by”,

(c) by inserting the following after section 7:

“Properties used by a charity for recreational activities.

7A.— A residential property shall not, for the purposes of this Act, be regarded as a relevant residential property where—

(a) the liable person in relation to the property is a charity, and

(b) the property is used solely as residential accommodation in connection with the facilitation of recreational activities in the course of the actual carrying out of a primary purpose of the charity.”,

and

(d) by inserting the following after section 10A (inserted by this Act):

“Permanently and totally incapacitated individuals.

10B.— (1) A residential property shall not, for the purposes of this Act, be regarded as a relevant residential property where—

(a) the property is occupied by an incapacitated individual (within the meaning of section 189A(1) of the Act of 1997) as his or her sole or main residence and—

(i) to whom paragraph (b) of section 189(1) of the Act of 1997 applies, or

(ii) who is a beneficiary undera qualifying trust (within the meaning of section 189A(1) of the Act of 1997),

and

(b) the property is—

(i) acquired because of its suitability for occupation by such an incapacitated individual, or

(ii) adapted to render it more suitable for the accommodation of such an incapacitated individual and the cost of the adaptation on completion of that adaptation exceeds an amount that is equivalent to one-quarter of the chargeable value of that property before it is adapted.

(2) Subsection (1) shall cease to apply on the sale (within the meaning of section 125) of the property unless the incapacitated individual continues to occupy that property as his or her sole or main residence.”.

3. Pyrite-induced damage.

3.— The Principal Act is amended by inserting the following after section 10:

“Pyrite-induceddamage.

10A.— (1) The Minister for the Environment, Community and Local Government shall make regulations—

(a) providing for the methodology for the assessment of residential properties and the testing of subfloor hardcore material to establish the presence of significant pyritic damage,

(b) providing for the issue, by a competent person, of a certificate in relation to a residential property confirming (if such be the case) that significant pyritic damage has, in respect of the property, been established, in accordance with the regulations,

(c) specifying the form of the foregoing certificate, and

(d) providing for such incidental or consequential matters in respect of the preceding paragraphs or such other matters as the Minister for the Environment, Community and Local Government deems appropriate having regard to scientific and technical considerations concerning instances of pyritic damage in the State or elsewhere.

(2) In making regulations under subsection (1), the Minister for the Environment, Community and Local Government shall have regard to Irish Standard 398-1:2013 published by the National Standards Authority of Ireland and any revisions of that standard as may from time to time be made.

(3) Subject to subsection (4), a residential property shall not, for the purposes of this Act, be regarded as a relevant residential property if a certificate under and in accordance with regulations under subsection (1) has been issued in relation to it.

(4) Notwithstanding subsection (3) and subject to subsection (5), a residential property shall not, for the purposes of this Act, be regarded as a relevant residential property in relation to three consecutive liability dates commencing with the first liability date on or before which a certificate under and in accordance with regulations under subsection (1) has been issued in relation to the property.

(5) Notwithstanding subsection (4), the liability date 1 May 2013 or 1 November 2013, as the case may be, may be treated as the first liability date of the three consecutive liability dates referred to in subsection (4) where—

(a) a certificate under and in accordance with regulations under subsection (1) in relation to a residential property has been issued after either of those liability dates and on or before 31 December 2013, and

(b) a liable person makes an election in writing to the Revenue Commissioners on or before 31 January 2014 specifying one or other of those dates as that first liability date.

(6) Where a liable person makes an election in accordance with subsection (5)(b), the Revenue Commissioners shall repay to the liable person any local property tax that was paid in respect of the liability date 1 May 2013 or 1 November 2013, as the case may be.”.

4. Liable person.

4.— The Principal Act is amended—

(a) in section 11(3)(f) by substituting “a prima facie right to apply” for “the right”,

(b) by inserting the following after subsection (5) of section 11:

“(5A) (a) Subject to paragraph (b), where—

(i) at any time on or after the lapse of 12 months from the death of a person (the ‘deceased’) a person occupies or receives the rents or profits from a relevant residential property comprised in the estate of the deceased (and whether or not such occupation or receipt by that person also occurred before that lapse), and

(ii) during that period of 12 months no grant of representation in respect of the deceased’s estate has been made,

then, unless and until a grant of representation is made in respect of that estate, the person shall be deemed to be a liable person in relation to that relevant residential property for so long as such occupation or receipt by the person in relation to that property continues.

(b) This subsection shall not apply to a case in which the deceased died testate leaving an executor surviving him or her.”,

and

(c) by substituting the following for section 12:

“Occupation or receipt of rents or profits as evidence of liability.

12.— (1) It shall be presumed, until the contrary is proved, that a person who is in occupation of a relevant residential property, or is in receipt of the rents or profits therefrom, is a liable person in relation to it.

(2) In administering this Act generally or in exercising any power to make a Revenue estimate or a Revenue assessment or to require the delivery of a return in relation to any relevant residential property or in exercising any other power thereunder, the Revenue Commissioners shall not be required firstly to inquire into the title to, or any estate, interest or right in, any particular residential property.”.

5. Valuation and rate.

5.— The Principal Act is amended—

(a) in section 14(1) by inserting “Subject to section 35(5A) (inserted by the Finance (Local Property Tax) (Amendment) Act 2013), where” for “Where”,

(b) in section 14 by inserting the following after subsection (1):

“(1A) (a) Where subsection (1) applies, the person who was the liable person before the change referred to in that subsection shall provide the person who is the liable person following that change with any relevant information or documentation in the knowledge or possession of that person in relation to the first valuation date (as referred to in that subsection) and the relevant residential property before that change occurs.

(b) The information or documentation that is relevant in relation to the matters referred to in paragraph (a) shall include the following information or documentation—

(i) the chargeable value at that valuation date included in a return,

(ii) a return, or

(iii) where no return was prepared and delivered to the Revenue Commissioners, any Revenue estimate made under section 47.”,

(c) in section 16(1) by substituting “Subject to and in accordance with the provisions of this Act,” for “Subject to the provisions of this Act, for each year”,

(d) in section 17(2) by inserting “(rounded down to the nearest euro)” after “chargeable value”,

(e) in section 17 by inserting the following after subsection (4):

“(5) The amounts specified in the Table to this section are amounts in euro.”,

(f) in row 10 of the Table to section 17 by substituting “450,001” for “451,001”,

(g) by substituting the following for paragraph (a) of section 19:

“(a) each of the following—

(i) the rate of local property tax represented by ‘C’ in the formula in section 17(1) (including the foregoing rate as it applies in the case specified in section 17(3)(b)(i)), and

(ii) the rate of local property tax represented by ‘C’ in the formula in section 17(1) that section 17(3)(b)(ii) provides shall apply in the case specified in that provision,

is referred to as the ‘basic rate’, and”,

(h) in section 20(2) by inserting “, for a period specified in the resolution and with effect from the date specified in section 21(2) (inserted by the Finance (Local Property Tax) (Amendment) Act 2013),” after “basic rate should”,

(i) in section 20 by inserting the following after subsection (2):

“(2A) In making a decision as to whether to pass such a resolution as is referred to in subsection (2) or as to the percentage that should be specified in it, a local authority shall, in addition to the matters (if any) specified under subsection (6)(a) have regard to—

(a) the local authority’s estimation of the income it will receive and the expenditure it will incur in the period for which the varied rate is to have effect,

(b) the financial position of the local authority, including the amounts standing as its accumulated assets and liabilities not less than one month before the date on which it is proposed to pass the resolution, and

(c) the local authority’s estimation of the financial effect of the varied rate on the economy of its functional area, including on those persons who will be liable to pay local property tax.”,

(j) in section 20(3) by inserting “, for the period specified in the resolution and with effect from the date specified in section 21(2) (inserted by the Finance (Local Property Tax) (Amendment) Act 2013),” after “shall be”,

(k) by substituting the following for section 21:

“21.— (1) Where a local authority passes the resolution referred to in section 20(2), it shall notify the Revenue Commissioners of the percentage by which the basic rate is to be varied, and—

(a) the notification shall be sent to the Revenue Commissioners in the form and manner specified by them, and

(b) the notification referred to in paragraph (a) shall be sent to the Revenue Commissioners on or before 30 September in the year in which the resolution is passed.

(2) Where a local authority complies with subsection (1), the varied rate shall take effect from the liability date in the year in which the notification is sent to the Revenue Commissioners.”,

and

(l) in section 146 by inserting the following after subsection (2):

“(2A) A liable person who fails to comply with section 14(1A) (inserted by the Finance (Local Property Tax) (Amendment) Act 2013) shall be liable to a penalty of €500.”.

6. Property adapted for use by disabled persons.

6.— The Principal Act is amended by inserting the following after section 15:

“Property adapted for use by disabled persons.

15A.— (1) Subject to subsections (2) to (5), where a relevant residential property has been adapted for the purposes of rendering it more suitable for the accommodation of a person who has a disability (within the meaning of section 2 of the Disability Act 2005), section 16(1) shall apply as if the reference in that provision to the chargeable value of a property were a reference to the chargeable value of the property as reduced by any value attributable solely to that adaptation of it.

(2) Subsection (1) shall not apply unless—

(a) a grant in respect of the cost of the work referred to in subsection (1) was paid under either of the following:

(i) Housing (Adaptation Grants for Older People and People with a Disability) Regulations 2007 (S.I. No. 670 of 2007), or

(ii) Regulation 4 of the Housing (Disabled Persons and Essential Repairs Grants) Regulations 2001 (S.I. No. 607 of 2001),

(b) on completion of the adaptation, the relevant residential property is occupied by the person who has the disability as his or her sole or main residence, and

(c) the liable person in relation to the adapted property notifies the Revenue Commissioners in writing of the amount of the chargeable value attributable to the adaptation and submits any relevant documentation, including that relating to the payment of a grant under the Regulations referred to in paragraph (a).

(3) The maximum amount by which the chargeable value of a relevant residential property may be reduced for the purposes of subsection (1) shall be the lesser of—

(a) the chargeable value attributable to the work carried out on the property, or

(b) the maximum grant payable under the Regulations referred to in subsection (2) as determined by the age of the property.

(4) The chargeable value referred to in paragraph (a) of subsection (3) shall be established on completion of the work referred to in that subsection, which value shall be used for the purposes of subsection (1) on all subsequent valuation dates unless further grants are paid under the Regulations referred to in subsection (2)(a)(i).

(5) Subsection (1) shall cease to apply on the sale (within the meaning of section 125) of the adapted property unless the person with the disability continues to occupy that property as his or her sole or main residence.”.

7. Social housing: valuation and payment.

7.— The Principal Act is amended—

(a) in section 17 by inserting the following after subsection (5):

“(6) Where—

(a) a local authority, or

(b) as the case may be, a body standing approved for the purposes of section 6 of the Housing (Miscellaneous Provisions) Act 1992,

is a liable person in relation to a relevant residential property, the chargeable value of the property shall be deemed to fall into the first valuation band in column (1) of the Table to this section in relation to the valuation date 1 May 2013.”,

and

(b) in section 119 by inserting the following after subsection (3):

“(4) Notwithstanding subsection (1A), the local property tax due in respect of the liability date 1 May 2013 on the part of a liable person referred to in section 17(6) (inserted by the Finance (Local Property Tax) (Amendment) Act 2013) shall be payable on or before 1 January 2014.”.

8. Returns.

8.— The Principal Act is amended—

(a) in section 35(2) by substituting “a liable person shall not be obliged to prepare and deliver a return in respect of a relevant residential property in respect of the liability dates 1 November 2013, 1 November 2014 and 1 November 2015” for “a liable person shall not be obliged to prepare and deliver a return in respect of the liability dates 1 November in 2013, 2014 and 2015 and a relevant residential property”,

(b) in paragraph (a) of section 35(4) by substituting “1 November 2013, 1 November 2014 and 1 November 2015” for “1 November in 2013, 2014 and 2015”,

(c) in paragraph (b) of section 35(4) by inserting “of each” before “of the liability dates”,

(d) in section 35 by inserting the following after subsection (5):

“(5A) Notwithstanding subsection (2) and section 14(1), the person who is the liable person following the change referred to in section 14(1) shall prepare and deliver a return in relation to the first liability date following that change falling before the next valuation date where—

(a) that person has received information or documentation in accordance with section 14(1A) (inserted by the Finance (Local Property Tax) (Amendment) Act 2013), and

(b) it appears to that person that the chargeable value in respect of the first valuation date (as referred to in section 14(1)) and the relevant residential property is not a chargeable value that could reasonably have been arrived at.”,

(e) by substituting the following for section 38:

“38.— (1) For the purposes of this section—

(a) ‘chargeable period’, ‘chargeable person’ and ‘specified return date for the chargeable period’ have the same meanings, respectively, as in section 959A of the Act of 1997, and

(b) where a liable person delivers a return required under section 959I(1) of the Act of 1997 on a date earlier than the specified return date for the chargeable period concerned, the specified return date shall be read as that earlier date.

(2) This subsection applies where a liable person is a chargeable person in relation to a chargeable period and has not in relation to any return required under this Part—

(a) prepared and delivered the return, or

(b) (i) paid the local property tax payable, or

(ii) entered into an arrangement with the Revenue Commissioners for payment of that local property tax,

on or before the specified return date for the chargeable period.

(3) Where subsection (2) applies—

(a) the liable person shall be deemed not to have delivered the return required under section 959I(1) of the Act of 1997 for the chargeable period concerned, and

(b) subject to subsections (4) and (5), the liable person shall be treated as if that person had failed to deliver the return referred to in paragraph (a) before the expiry of 2 months from the specified return date for the chargeable period concerned and a surcharge as referred to in section 1084(2)(a)(ii) of the Act of 1997 shall apply.

(4) Subject to subsection (5), where subsequent to the specified return date for the chargeable period, the liable person—

(a) prepares and delivers all returns required under this Part, and

(b) pays the local property tax payable in respect of those returns or enters into an arrangement with the Revenue Commissioners for payment of that tax,

the surcharge arising by virtue of subsection (3) shall not exceed the amount of the local property tax payable by reference to those returns.