Employers, local authorities, LPT agents, statistics, LPT legislation

Local authorities

There are specific filing and payment arrangements in place for Local Property Tax (LPT) for the local authorities.

Each local authority is to inform Revenue on an ongoing basis of any properties:

• added to its housing stock
• removed from its housing stock
• exemption category (if applicable)

Are local authorities liable for the Local Property Tax (LPT)?

Local authorities are liable to pay the tax on their properties in the same way as any other residential property owner.

Exemptions may also apply to these residential properties in the same manner as any other residential property.

Can a local authority pass on the cost of LPT to its tenants in the form of an increase in rent?

It is a matter for the local authority to decide whether it will:

• pass on the LPT liability to its tenants in the form of an increase in rent
• pay the liability without recourse to its tenants.

How should local authorities value their residential properties for LPT purposes?

Local authorities value their residential properties in valuation Band 1 (€0 - €100k) for the liability date of 1 May 2013 and (€1 - €200k) for the valuation date of 1 November 2021.

What arrangements apply to residential properties purchased from local authorities?

If you purchase a property from a local authority, you must make a return and self-assess the value of the property on the next liability date (that is 1 November following the date of purchase).

Who is liable to pay the tax under local authority shared ownership schemes?

Residential properties purchased under the local authority shared ownership schemes are subject to LPT.

It is the tenant purchaser that is liable for LPT in relation to properties that are in shared ownership. This is on the basis that, under this scheme, the tenant acquires a leasehold interest in the property for a period that exceeds 20 years. 

• Leases entered into before 1 May 2013: the LPT due is calculated on the market value of the property on 1 May 2013.
• Leases entered into after 1 May 2013: if the local authority owned the property on  that date, LPT is due at Band 1.
• Leases entered into after 1 May 2013 where the property was not owned by the local authority on that date: the LPT due is calculated on the market value of the property on 1 May 2013 or 1 November 2021, as appropriate.

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