Don’t agree with Revenue’s property tax estimate?

What to do if you don’t agree with Revenue’s propery tax estimate on your property

Revenue is in the process of issuing notices of estimate of Local Property Tax (LPT) to property owners.  It’s important to highlight that these letters are just that: ESTIMATES.  It is Revenue’s way of telling you that if you don’t make your return by 7 May (28 if filing online) it will seek to recover that amount from you.

The LPT is a self-assessed tax.  This means the property owner judges the value of the property and calculates the tax on that value.   So, regardless of what you think of Revenue’s estimate, you must prepare and file form LPT 1 Return of Local Property Tax using YOUR OWN VALUATION.

Returns must be filed by 7 May 2013.  If you file the return electronically you have until 28 May.  Payment of the tax is due on 1 July 2013 but you can opt to pay in equal installments between then and the end of the year.

You MUST file electronically if:

  • You have more than one property;or
  • You are obliged by law to file your other tax returns online

What if Revenue challenges my valuation?

Revenue has issued guidelines to assist in valuing properties. In its notice of estimate it states:

If you follow the guidance in an honest manner Revenue will accept your valuation

If Revenue doesn’t accept your valuation and imposes its own valuation you have the right to appeal.

What if I subsequently discover I have over-valued my property?

It’s important to remember that the valuation should be the value on the valuation date, ie 1 May 2013.  If you feel you have overvalued your property you would need to be able to prove that the circumstances leading to this belief were in existence on the valuation date and didn’t occur after that date.  For example, say you value you property at €150,000.  A month later your neighbour sells his house (which is identical to yours) for €95,000.  The €95,000 valuation will be at 1 June and not 1 May.

The LPT Act does provide for limited circumstances in which a refund of LPT can be made.  This is where the tax has been paid and an error or mistake has been made in the return.

What if the value of my property goes up or down?

The valuation date for LPT is 1 May 2013.  This will be the valuation date for 2013, 2014, 2015 and 2016.  So anything that alters the value of your property after that date is irrelevant until 2017.

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