Local Property Tax - Wrong Estimate

The LPT is a self-assessed tax and it is important to remember that the estimates are for guidance or for those who do not pay in time.

The LPT is a self-assessed tax and it is important to remember that the estimates are for guidance. They are not necessarily accurate and you must check your letter closely.

To ensure you pay the correct amount of tax the first step is to work out which valuation band your property falls into. You are essentially trying to figure out what the value of your property is at the 1st of May 2013. There are a few ways of working this out; you can see how much properties in your area sold for recently or you can check property websites or estate agents to see what similar properties in your area are priced at. The register of residential property sales, published by the Property Services Regulatory Authority (PSRA), propertypriceregister.ie, can also give useful guidance for similar properties sold in your area. Lastly, you could consider having an estate agent value your house.

Once you have worked out the market valuation band, you calculate your bill by taking the mid point of the band and multiplying by 0.18%.Our table below gives full details of the valuation bands. The important thing is not to simply take Revenue's estimate as final. They have published guidance on their website for average properties in a given area but they do not give values for individual properties. When comparing your house to the 'average' in your area you should also consider the age of your property, its location, whether your house is smaller or larger than the average for the area, if it is in a significantly poor state of repair or has exceptional or unique features.

Example

A property is valued at €430,000. This falls into valuation band 08. The midpoint of this band is €425,000. The tax liability is €425,000 * 0.18% = €765.

For 2013, only 50% of the charge is payable (I.e. €382 in the above example). In 2014, the full amount will be charged.

Properties over €1million

Where a property is valued at more than €1 million the excess above €1 million is liable to an increased rate of 0.25%.

If Revenue believes the property is undervalued they can raise an assessment on a higher valuation. You can appeal this to the Appeal Commissioners if you are unhappy with Revenue's valuation.

Date published 17 Apr 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.