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Thousands claim homes have low value in property tax returns


Finance Minister Paschal Donohoe said that property tax of €428m has effectively been secured for 2022

Finance Minister Paschal Donohoe said that property tax of €428m has effectively been secured for 2022

Finance Minister Paschal Donohoe said that property tax of €428m has effectively been secured for 2022

MOST people have now filed a property return but thousands of owners claim their properties have a low valuation.

Property tax returns for 1.57 million properties have been returned.

This is out of a total of close to 2 million properties, meaning that returns for more than 400,000 properties have yet to be filed with Revenue.

Fresh statistics from the tax authority show that the valuations on a third of the properties have been put under €200,000.

This is based on valuations for 1.35 million properties which have been submitted.

This means that close to 430,000 properties are being valued by their owners at under €200,000. These homeowners will have to pay just €90 a year in the tax.

Local Property Tax is a self-assessed tax.

Another 300,000 properties have been valued at under €262,500.

Owners with properties in this valuation band, of between €200,001 and €262,500, have to pay €225 a year.

All told some 730,000 properties have been valued at under €262,500.

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This is despite the fact that the property market is on fire at the moment, with prices surging by 12pc in the past year.

The large numbers of properties with such low valuations has raised fears that homeowners are deliberately under-valuing their homes so they can pay the smallest amount of the tax possible.

Revenue has said it will not overturn a valuation where a property owner has made an honest estimate and can provide supporting documents.

However, if the valuation cannot be supported, Revenue will engage with the property owner to agree a revised valuation.

Revenue said it has been checking valuations over the past few years, and just a small number of homeowners were found to be undervaluing.

Finance Minister Paschal Donohoe welcomed what he said was the progress achieved by Revenue implementing the revaluation of properties for the property tax.

He said returns in respect of over 1.57 million properties are being treated as filed.

This representing approximately 79pc of the expected number of properties liable for LPT for 2022.

But when people who have been paying the tax up to now, but have yet to file a new return, are added in the overall payment compliance rate rises to 89pc.

Most returns were filed online.

Exemptions were claimed for 13,800 properties. These include homes impacted by the mica pyrite crisis and homes where the owner is in long-term residential care.

Deferrals have been claimed for 9,700 properties.

Mr Donohoe said that property tax of €428m has effectively been secured for 2022 already.

The yield last year was around €480m.

Property owners who have not yet filed their Local Property Tax return were urged to do so by the minister.

He said the quickest and easiest way to do this is online using myAccount, ROS or the LPT online portal, all of which can be accessed via the Revenue website.

Revenue said those who did not file their return by the extended deadline still have an obligation to do so and has strongly encouraged them to file their return immediately.

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