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Frequently Asked Questions

 

What is Local Property Tax (LPT)?

Local Property Tax (LPT) is an annual tax charged on all residential properties in the State and came into effect in 2013. A half-year payment was due in 2013, with a full-year payment due for 2014 and each year thereafter. The LPT is collected by the Revenue Commissioners and further details on the Local property Tax are available on Revenue’s website @  Local Property Tax (LPT). The liability date for Local Property Tax, the date on which it falls due for payment, is the 1st November in the preceding year. So for 2017 the liability date was the 1st of November 2016.

What is Residential Property for the Purpose of LPT?

A residential property means any building or structure (or part of a building) which is used as, or is suitable for use as, a dwelling and includes any shed, outhouse, garage or other building or structure and includes grounds of up to one acre. The LPT does not apply to development sites or farmland.

Who is liable to pay the LPT?

All owners of residential property, including rental properties, are liable to pay the tax. The following groups are also liable for LPT:

• People who have a long-term lease (20 years or more)

• People with a life interest or long-term right of residence (life or more than 20 years) in a residential property

• Local authorities or social housing organisations

• A person acting as a personal representative for a deceased owner (for example, as an executor/administrator of an estate). Trustees or beneficiaries are jointly liable where a residential property is held in trust.

How is your property valued?

The tax is based on the chargeable value of a residential property on the valuation date. The chargeable value is defined as the market value that the property could reasonably be expected to fetch in sale on the open market on the valuation date. The first valuation date for LPT was the 1st May 2013 and was for the 4-year period until 2016. The initial valuation of your property on the 1st May 2013 was valid for the period 2013 to 31 October 2016 and would not be affected by any repairs or improvements made to your property or any general increase in property prices during that period. The next valuation date was set for the 1st November 2016. However, following a review of the Local Property Tax it was announced in Budget 2016 that the revaluation date for the Local Property Tax was being postponed from the 1st November 2016 to the 1st November 2019. The postponement of the date means that home owners will continue to pay LPT based on the original valuations that applied in 2013 until 2019. This change to the valuation date was given legal effect by Section 7 of the Finance (Local Property Tax) (Amendment) Act 2015.

How is the LPT charge assessed?

The LPT is based on the market value of property. The rate of LPT is 0.18% for properties up to a market value of €1million and 0.25% on the portion of the value above €1million (these percentages are known as basic rate).

What is the Local Adjustment Factor?

The Elected Members can decide to vary or not to vary the basic rate of the Local Property Tax within its own administrative area by a maximum of 15% of the basic rate (0.18% or 0.25% depending on the value of the property). This adjustment will apply for a period of one year from the next Local Property Tax liability date (1st November). This means that Dún Laoghaire-Rathdown County Council can either increase or decrease the rate of Local Property Tax by up to 15% or, leave it unaltered.

The adjustment to the basic rate is known as the Local Adjustment Factor. More detailed information on the Local Adjustment Factor can be found in the Local Property Tax (Local Adjustment Factor) Regulations 2014

What does this mean for the average household?

The table below gives an indication of the rate of Local Property Tax for properties coming within different valuation bands following a 15% decrease or increase on the base rate applicable to the LPT valuation band. The rate of local property tax is calculated by multiplying the mid - point of the valuation band into which property falls by a tax rate of 0.18% (the tax rate of 0.18% applies to properties with a market value of up to €1m. For properties with a value in excess of €1m the rate of 0.18% applies to the first €1m in value and a tax rate of 0.25% on the value above €1m). For example, if your property comes within the valuation band €350,001- €400,000, you would have paid €675 Local Property Tax for 2017 in the normal course of events but the actual payment made was reduced to €573.75 as a result of the Elected Members decision to retain the reduction in the basic rate of lpt of 15% for 2017.

LPT Valuation Band

2015 LPT Tax

-15%

+15%

 

€0 – 100,000

€90

€76.50

€103.50

€100,001 – 150,000

€225

€191.25

€258.75

€150,001 – 200,000

€315

€267.75

€362.25

€200,001 – 250,000

€405

€344.25

€465.75

€250,001 - 300,000

€495

€420.75

€569.25

€300,001 - 350,000

€585

€497.25

€652.75

€350,000 - 400,000

€675

€573.75

€776.25

€400,001 - 450,000

€765

€650.25

€879.75

€450,001 – 500,000

€855

€726.75

€983.25

€500,001 - 550,000

€945

€803.25

€1086.75

€550,001 - 600,000

€1035

€879.75

€1190.25

Does the 15% reduction applied in 2017 carry forward to 2018?

The 15% reduction to the basic rate of LPT retained for 2017 applied for the period 1st November 2016 (liability date) to 31st October 2017. The rate reverts to the basic rate at the 1st November 2017, i.e. the pre-adjusted rate, and the Elected Members must now consider whether to retain the reduction to the basic rate, apply an alternative lower reduction or increase it, for 2018.

What will an adjustment in the Local Property Tax mean in terms of Council services?

If the rate is reduced and if funding is not available to replace this reduction, then a reduced level of income available to the Council will limit the range and extent of services and supports that can be provided in 2018.

If the rate is increased, then an increased level of income available to the Council will increase the capacity to deliver services and supports in 2018

What is the money collected under the Local Property Tax used for in the Council?

This money contributes towards the cost of providing a range of local Council services including libraries, public lighting, road sweeping, road maintenance, housing services, fire services, recreational facilities, planning services, pollution control, supporting community initiatives, dealing with illegal dumping and littering, beach management and tourism development initiatives etc. Further information relating to the Council’s finances is available on our website where the Council’s annual budgets and end of year accounts can be found - http://www.dlrcoco.ie/en/council-democracy/finance-homepage

When will the Council make a decision on varying the rate of Local Property Tax in Dún Laoghaire-Rathdown?

This decision will be made at a Council meeting to be held in September 2017.

Can I give my views and opinions on any proposal to increase or decrease the rate of Local Property Tax?

Yes, Dún Laoghaire-Rathdown County Council would like to hear your views and opinions on the proposal to vary the rate of Local Property Tax applicable within the County.  We would like to hear your thoughts on the potential effects of varying the basic rate of the Local Property Tax on households, individuals, businesses and on Council services.

The period for making a submission runs from Wednesday 21st June, 2017 to Tuesday 15th August, 2017.

Submissions may be made using one of the following methods.

  1. Online through the Council’s consultation hub at www.dlrcoco.ie
  2. By E Mail To lptsubmissions@dlrcoco.ie
  3. By post to Local Property Tax Submissions, FMS Section, County Hall, Marine Road, Dun Laoghaire, Co.Dublin

Submissions should be clearly marked “Proposed LPT Variation”

All submissions must be received by Tuesday 15th August 2017.

While there is no prescribed format for a submission please include your name, address or email address on your submission along with your comments.

What will the Council do with the submissions that are received?

The elected members of Dún Laoghaire-Rathdown County Council will consider the feedback received from this public consultation as part of the decision-making process.  The Chief Executive will provide a summary of the written submissions received in a report to the elected members. 

In making their decision on whether or not to vary the rate, the elected members will consider the following:

  • Estimated Income and Expenditure for the Council in 2018
  • Financial Position of the County Council at present
  • Estimated Financial effect of the varied rate in 2018
  • Feedback from the Public Consultation

Dún Laoghaire-Rathdown County Council must notify the Revenue Commissioners & the Department of Housing, Planning, Community & Local Government by the 30th of September 2017 of its decision. Within 14 days of the passing of a resolution by the Elected Members to vary the Local Property Tax a notice must also be placed on the Council’s website and in one newspaper circulating in the Council’s administrative area.

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