Mr. Sean Mullarkey, Financial Accountant, gave a presentation on the recently announced changes to the structure of the Local Property Tax under the Finance (Local Property Tax) (Amendment) Bill 2021:

•       Revised method of calculating liability resulting in most homeowners facing no increase

•       The bringing of certain currently exempted and excluded properties into the LPT system

Iimplementation of recommendations of the 2019 LPT review regarding regularly bringing new properties within LPT charge each November, providing that property valuations are reviewed every 4 years, ending certain exemptions for first time buyers and unsold trading stock and modifying the exemption for properties vacated by persons due to illness.

The LPT was calculated based on valuation on 1^st May 2013 and the revised valuation date is 1^st November 2021. All money collected locally is retained; the consultation period is reduced to two weeks and the new revenue deadline is 31^st August (in revaluation year).

•       Effects on Roscommon LPT 2022:

•       Circular Fin 15/2021 dated 17 June 2021

•       Baseline allocation for 2022 is €10,216,232 – no change to allocation model. 80% LPT retention locally + 20% to fund equalization

•       Equalization funding of €6,965,449

•       80% retained locally €3,250,783

•       1% LPT variation +/- equates to €40,634, 15% LPT variation equates to €609,521

•       Public to pay LPT in 2022 on new band valuations from 1 Nov 2021

•       Will be early 2022 before Revenue determine impact of new valuations and bands. This will affect the 2023 Budget

•       Agreement is required on the consultation period – 28^th June to 11^th July

•       The Council will be required to make a decision on the LPT at the July Plenary meeting.

The members discussed as follows:

·         How will property owners value their properties and will guidance be available?

·         The change includes associated buildings and up to one acre and can even include a second dwelling on the site – how will this be assessed?

·         Potentially up to 98% of property owners will have their property tax at the €90 rate. Is this correct?

·         It should be easy to do the assessment of the valuation by checking the price register for local property values. However there will be many properties close to the €200k valuation.

·         Insurance valuations cannot be used because the rebuilding costs are not a measure of the valuation. Is there merit on calling on Revenue to give guidance?

·         Are there figures available on new properties in ghost estates from 2013 to date that have not previously been liable for property tax?

·         Will the property register be the valuation basis?

·         What is the baseline property tax for Roscommon?

·         People need to be clear on what basis they should make their valuation.

·         Can insurance values be used for valuation?

In reply to the queries on valuation, Mr. Mullarkey replied that no guidelines have been issued as yet with regard to valuations but it will be self-assessment by whatever means is considered appropriate. There are no statistics available on new properties in ghost estates but it is considered to be of the order of €100k nationally. The property tax baseline is €10.2m and this will not change presently so any shortfall in tax collected locally will be paid by central government. There is a significant change in the bands that will affect the collection rate in Roscommon but it will be 2022 before it is known what that will be.