Micheál Martin (Cork South Central, Fianna Fail)
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48. To ask the Minister for Finance if he will investigate the local property tax and household charge liability in respect of a person (details supplied) in County Cork; if the person qualifies for a disability exemption due to their circumstances; and if he will make a statement on the matter. [28872/14]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that Sections 10B and 15A of the Finance (Local Property Tax) Act 2012 (as amended) provide, that an exemption from Local Property Tax (LPT), or a reduction in market value may, subject to specific conditions, apply to a residential property that was built or adapted to make it suitable for occupation by a permanently and totally incapacitated person as their sole or main residence. The reliefs can not apply to properties that were not adapted for use by incapacitated persons.

In regard to the specific case to which the Deputy refers, Revenue has confirmed to me that the person in question paid his LPT liabilities in respect of both 2013 and 2014, but according to the HHC records received from the Local Government Management Agency (LGMA) did not pay the original €100 Household Charge (HHC) in respect of 2012. The LGMA records also confirmed that there was no exemption or waiver in place in respect of the property.

By way of background information, Section 156 of the Act converted all HHC arrears still outstanding on 1 July 2013 to LPT, increased the liability from €100 to €200 per property and made Revenue responsible for collecting the liabilities.  Revenue has no discretion in this regard and is obliged to apply the €200 charge as set down in the legislation.

Revenue has informed me that a member of the LPT team has already discussed this case with the parent of the person in question and confirmed that the property does not qualify for an exemption from LPT because it was not adapted for use by an incapacitated person, nor does it qualify for an exemption from HHC on the basis of the records received from the LGMA. The LPT team member did indicate to the parent that the person could in fact be entitled to a deferral from LPT/HHC based on his income level, but the parent stated that the family was not interested in taking such an approach.

Again by way of background information, the LPT legislation provides for a full deferral of LPT/HHC where a single/widowed property owners gross income does not exceed €15,000. This income threshold can also be adjusted upwards by including 80% of any gross mortgage interest payments. The interest element of any such deferral is 4% as distinct from the normal 8% charge that applies in respect of unpaid liabilities and in most circumstances remains in place for the valuation period, i.e. currently for the tax years 2013, 2014, 2015 and 2016.

The LPT team member committed to again contact the parent in the coming days once the family has had an opportunity to further consider both the deferral option and the various payment methods that Revenue has made available to pay the arrears of HHC.