Finance (Local Property Tax) (Amendment) Act 2021

PART 1 Preliminary and General

1. Short title

1. This Act may be cited as the Finance (Local Property Tax) (Amendment) Act 2021.

2. Definitions

2. In this Act—

“Act of 1997” means the Taxes Consolidation Act 1997;

“Principal Act” means the Finance (Local Property Tax) Act 2012.

3. Application

3. The amendment of the Principal Act effected by the following provisions shall apply only in respect of the year 2022 and each subsequent year:

(a) sections 4(b) and 5;

(b) Part 3, other than sections 10, 13, 14 and 15, and paragraphs (c)(i), (d) and (e) of section 16;

(c) section 19(a);

(d) Part 5, other than sections 20, 22(c), 26(a) and 27;

(e) Part 6, other than sections 29(d) and 31;

(f) Part 7;

(g) Part 9, other than section 39;

(h) section 41.

PART 2 Amendments to Part 1 of Principal Act

4. Amendment of section 2 of Principal Act

4. Section 2 of the Principal Act is amended—

(a) by the insertion of the following definitions:

“‘approved housing body’ means a body approved of or standing approved of, under, or for the purposes of, section 6 of the Housing (Miscellaneous Provisions) Act 1992;

‘valuation date’ shall be construed in accordance with section 13(1);

‘valuation period’ shall be construed in accordance with section 13(1A);”,

and

(b) by the substitution of the following definition for the definition of “residential property”:

“‘residential property’ shall be construed in accordance with section 2A;”.

5. Residential property

5. The Principal Act is amended by the insertion of the following section after section 2:

“2A. (1) In this Act, ‘residential property’ means any building which is in use as, or is suitable for use as, a dwelling.

(2) A shed, outhouse, garage or other building which is appurtenant to or usually enjoyed with a residential property shall be considered, for the purposes of this Act, to form part of the residential property.

(3) Subject to subsection (4), yards, gardens or other lands appurtenant to or usually enjoyed with a residential property as its garden or grounds shall be considered, for the purposes of this Act, to form part of the residential property.

(4) Where the total area of the yards, gardens and other lands, referred to in subsection (3), exceeds 0.4047 hectares, only those parts of such yards, gardens and other lands, which would be the most suitable for occupation and enjoyment with the dwelling, up to a total area (exclusive of the area, at ground level, of the building referred to in subsection (1)) of 0.4047 hectares, shall form part of the residential property.”.

PART 3 Amendments to Part 2 of Principal Act

6. Amendment of section 3 of Principal Act

6. Section 3 of the Principal Act is amended by the substitution of “sections 3A to 10D” for “sections 4 to 10B”.

7. Application of exemptions

7. The Principal Act is amended by the insertion of the following section after section 3:

“3A. Section 4, 5, 7, 7A, 10A, 10B, 10C or 10D, as the case may be, shall not apply in respect of a relevant residential property unless the person who prepares the return for the property has specified in the return, in accordance with section 41A, that the property should not, in accordance with section 4, 5, 7, 7A, 10A, 10B, 10C or 10D, as the case may be, be regarded, for the purposes of section 16(1), as a relevant residential property.”.

8. Amendment of section 4 of Principal Act

8. Section 4 of the Principal Act is amended by the substitution of “for the purposes of section 16(1)” for “for the purposes of this Act”.

9. Amendment of section 5 of Principal Act

9. Section 5 of the Principal Act is amended, in subsection (2) —

(a) by the substitution of “for the purposes of section 16(1)” for “for the purposes of this Act”,

(b) by the substitution of “occupied by a person, being a liable person in relation to that property,” for “occupied by a person who, apart from this paragraph, would be a liable person,”, and

(c) by the substitution of “provided that the property is not occupied by any other liable person in relation to that property,” for “provided that the property is not occupied by any other person,”.

10. Amendment of section 6 of Principal Act

10. Section 6 of the Principal Act is amended by the substitution of “as a relevant residential property in relation to the liability dates in the years 2013 to 2020” for “as a relevant residential property”.

11. Amendment of section 7 of Principal Act

11. Section 7 of the Principal Act is amended, in subsection (2), by the substitution of “for the purposes of section 16(1)” for “for the purposes of this Act”.

12. Amendment of section 7A of Principal Act

12. Section 7A of the Principal Act is amended by the substitution of “for the purposes of section 16(1)” for “for the purposes of this Act”.

13. Amendment of section 8 of Principal Act

13. Section 8 of the Principal Act is amended, in subsection (1), by the substitution of “as a relevant residential property in relation to the liability dates in the years 2013 to 2020” for “as a relevant residential property in respect of the liability dates in the years 2013, 2014, 2015, 2016, 2017 and 2018”.

14. Amendment of section 9 of Principal Act

14. Section 9 of the Principal Act is amended—

(a) by the substitution of “31 October 2021” for “31 October 2019” in each place where it occurs, and

(b) by the substitution of “a relevant residential property in relation to any liability date” for “a relevant residential property in respect of any liability date”.

15. Amendment of section 10 of Principal Act

15. Section 10 of the Principal Act is amended, in subsection (2), by the substitution of “as a relevant residential property in relation to the liability dates in the years 2013 to 2020” for “as a relevant residential property”.

16. Amendment of section 10A of Principal Act

16. Section 10A of the Principal Act is amended—

(a) in subsection (3), by the substitution of “for the purposes of section 16(1)” for “for the purposes of this Act”,

(b) in subsection (3A)(a), by the substitution of “for the purposes of section 16(1)” for “for the purposes of this Act”,

(c) in subsection (4)—

(i) by the substitution of “subject to subsections (5) and (6A)” for “subject to subsection (5)”, and

(ii) by the substitution of “for the purposes of section 16(1)” for “for the purposes of this Act”,

(d) in subsection (4B)(c), by the substitution of “subject to subsections (5) and (6A)” for “subject to subsection (5)”, and

(e) by the insertion of the following subsection after subsection (6):

“(6A) Notwithstanding subsections (3) and (4), a residential property shall be regarded as a relevant residential property where—

(a) a certificate under and in accordance with regulations made under subsection (1) is issued in relation to the property,

(b) the liable person in relation to the property is notified under the Pyrite Resolution Act 2013 that the property has been included in the pyrite remediation scheme, or

(c) the liable person in relation to the property makes an application under subsection (3A),

after the end of the period of 2 years commencing on the date of the passing of the Finance (Local Property Tax) (Amendment) Act 2021.”.

17. Amendment of section 10B of Principal Act

17. Section 10B of the Principal Act is amended, in subsection (1), by the substitution of “for the purposes of section 16(1)” for “for the purposes of this Act”.

18. Additional exemptions

18. The Principal Act is amended by the insertion of the following sections after section 10B:

“North-South implementation bodies

10C. A residential property shall not, for the purposes of section 16(1), be regarded as a relevant residential property where the liable person in relation to the property is an implementation body (within the meaning of the British-Irish Agreement Act 1999).

Properties constructed using defective concrete blocks

10D. (1) Subject to subsection (4), a residential property that has been damaged as a result of the use of defective concrete blocks in its construction shall not, for the purposes of section 16(1), be regarded as a relevant residential property where—

(a) a confirmation of eligibility in relation to the property has been issued,

(b) the property has been or is being remediated in satisfaction of a claim made and settled under structural warranty insurance, structural warranty guarantee or some other form of insurance, or

(c) the person who constructed the property, or who caused the property to be constructed (in this section referred to as the ‘builder’), remediates the property or puts the liable person in relation to that property in sufficient funds to remediate the property,

and, in the case of a property referred to in paragraph (b) or (c), the Revenue Commissioners confirm, under subsection (2), that the residential property shall not be so regarded.

(2) (a) A liable person may, in relation to a property referred to in subsection (1)(b) or (c), make an application in writing to the Revenue Commissioners for confirmation that the property shall not, for the purposes of section 16(1), be regarded as a relevant residential property.

(b) For the purposes of an application under paragraph (a), the Revenue Commissioners may specify the form of an application and may require that the following information is provided to them:

(i) the address of the residential property;

(ii) the nature and extent of the damage caused by the use of defective concrete blocks in the construction of the property;

(iii) any documentation provided by a competent engineer;

(iv) the results of any testing carried out at the property to establish the damage caused by the use of defective concrete blocks;

(v) any documentation provided in relation to a claim or settlement under structural warranty insurance, structural warranty guarantee or some other form of insurance;

(vi) any documentation provided by the builder of the property in relation to the remediation of that property;

(vii) a certificate of remediation;

(viii) any other particulars the Revenue Commissioners may reasonably require for the purpose of considering the application.

(c) No confirmation shall be given by the Revenue Commissioners in respect of an application under paragraph (a) unless they are satisfied that paragraph (b) or (c) of subsection (1) applies in relation to a residential property.

(3) For the purposes of subsection (2), the Revenue Commissioners shall publish guidance in relation to—

(a) the manner in which an application shall be made,

(b) the information or documentation to be provided by the liable person in support of the application, and

(c) any other information or documentation that the Revenue Commissioners consider to be relevant for the purpose of considering an application.

(4) Notwithstanding subsection (1), a residential property shall not, for the purposes of section 16(1), be regarded as a relevant residential property in relation to six consecutive liability dates commencing with the first liability date on or before which, in so far as it relates to a property referred to in subsection (1)(a), a confirmation of eligibility has been issued, where that first liability date falls on or after 1 November 2021.

(5) (a) Where paragraph (b) or (c) of subsection (1) applies in relation to a residential property, the confirmation in writing given by the Revenue Commissioners under subsection (2) shall specify a date (in this subsection referred to as the ‘effective date’), for the purposes of this subsection.

(b) The effective date shall be—

(i) where paragraph (b) of subsection (1) applies, the date on which the funds are provided in satisfaction of a claim for the remediation of the property,

(ii) where paragraph (c) of subsection (1) applies, the date on which the builder completes the remediation of the property or provides sufficient funds for the remediation of the property, or

(iii) 31 October 2021, where the date that would result from the application of subparagraph (i) or (ii) is before that date.

(c) Notwithstanding subsection (1), a residential property shall not, for the purposes of section 16(1), be regarded as a relevant residential property in relation to six consecutive liability dates commencing with the first liability date after the effective date.

(6) In this section, ‘certificate of remediation’, ‘competent engineer’, ‘confirmation of eligibility’ and ‘defective concrete blocks’ have the meanings assigned to them, respectively, by the Dwellings Damaged by the Use of Defective Concrete Blocks in Construction (Remediation) (Financial Assistance) Regulations 2020 (S.I. No. 25 of 2020).”.

PART 4 Amendments to Part 3 of Principal Act

19. Amendment of section 11 of Principal Act

19. Section 11 of the Principal Act is amended—

(a) by the insertion of the following subsection after subsection (1):

“(1A) Where—

(a) a local authority or an approved housing body enters into a lease in relation to a relevant residential property, and

(b) the terms of the lease are such that the local authority or the approved housing body, as the case may be, would, but for this subsection, be the liable person in relation to the property,

the lessor shall be the liable person in relation to the property.”,

and

(b) in subsection (2)(b), by the substitution of “rights in a relevant residential property” for “rights in relevant residential property”.

PART 5 Amendments to Part 4 of Principal Act

20. Amendment of section 13 of Principal Act

20. Section 13 of the Principal Act is amended—

(a) by the insertion of the following subsection after subsection (1):

“(1A) In this Act, a period of years referred to in paragraph (a), (b) or (c) of subsection (2) is referred to as a valuation period.”,

and

(b) by the substitution of the following subsection for subsection (2):

“(2) The valuation date in relation to a relevant residential property shall be—

(a) 1 May 2013 for the years 2013 to 2021,

(b) 1 November 2021 for the years 2022 to 2025, and

(c) for each consecutive 4-year period after the year 2025, 1 November in the year preceding the first year of the particular 4-year period.”.

21. Valuation of properties completed or refurbished after valuation date

21. The Principal Act is amended by the insertion of the following section after section 13:

“13A. Where, on a date that is between two consecutive valuation dates, a building becomes a residential property, its chargeable value shall be the value that the building would have had on the preceding valuation date if it had been a residential property on that date.”.

22. Amendment of section 14 of Principal Act

22. Section 14 of the Principal Act is amended—

(a) in subsection (1), by the substitution of “Subject to subsection (1B) and section 35(5A)” for “Subject to section 35(5A)”,

(b) by the insertion of the following subsection after subsection (1A):

“(1B) Where—

(a) the person who was the liable person in relation to a relevant residential property before the change referred to in subsection (1) was a local authority or an approved housing body, and

(b) the person who is the liable person in relation to the relevant residential property after the change referred to in subsection (1) is neither a local authority nor an approved housing body,

subsection (1) shall not apply.”,

and

(c) in subsection (2), by the deletion of “or on the first valuation date for any consecutive 3-year period after the year 2019”.

23. Deletion of section 15 of Principal Act

23. Section 15 of the Principal Act is deleted.

24. Amendment of section 17 of Principal Act

24. The Principal Act is amended by the substitution of the following section for section 17:

“17. (1) In this section, a reference to the number of the band into which a relevant residential property falls is a reference to the number specified in column (1) of the Table to this section opposite the valuation band specified in column (2) of that Table into which the chargeable value (rounded down to the nearest euro) of the property falls.

(2) Where a relevant residential property falls into band 1, the amount of the local property tax to be charged in respect of the chargeable value of that property shall be €90.

(3) Where a relevant residential property falls into band 2, the amount of the local property tax to be charged in respect of the chargeable value of that property shall be €225.

(4) Where a relevant residential property falls into any of the bands 3 to 11, the amount of the local property tax to be charged in respect of the chargeable value of that property shall be the amount represented by A in the formula—

A=B*C

where

B is the mid-point, specified in column (3) of the Table to this section opposite the valuation band specified in column (2) of that Table into which the chargeable value (rounded down to the nearest euro) of the property falls, and

C is 0.001029.

(5) Where a relevant residential property falls into any of the bands 12 to 19, the amount of the local property tax to be charged in respect of the chargeable value of that property shall be the amount represented by A in the formula—

A=(BC)+[(D-B)E]

where

B is €1,050,000,

C is 0.001029,

D is the mid-point, specified in column (3) of the Table to this section opposite the valuation band specified in column (2) of that Table into which the chargeable value (rounded down to the nearest euro) of the property falls, and

E is 0.0025.

(6) Where the chargeable value of a relevant residential property exceeds €1,750,000, the amount of the local property tax to be charged in respect of the chargeable value of that property shall be the amount represented by A in the formula—

A=(BC)+[(D-B)E]+(F*G)

where

B is €1,050,000,

C is 0.001029,

D is €1,750,000,

E is 0.0025,