Flooded homeowners can defer local property tax but will pay interest

Flooded homeowners will still have to pay interest if they decide to delay paying local property tax, Revenue has confirmed.

Flooded homeowners can defer local property tax but will pay interest

Although families left homeless by flooding have been given some reprieve on paying local property tax they will still have to pay 4% interest if they defer payment.

It comes as the Government was criticised for “completely misleading” flood victims by implying that they can revalue their properties and receive a reduced LPT bill for 2016.

Earlier this week Finance Minister Michael Noonan said if homeowners believe their property has reduced in value as a result of flooding they can resubmit a valuation for the purposes of property tax. But Fianna Fáil finance spokesman Michael McGrath said: “No such mechanism is in place and he needs to come clean and clarify his remarks immediately.”

Mr McGrath pointed out that a Local Property Tax Bill was signed in to law provides for the May 2013 valuation to be extended until 2019: “This means that the basis for LPT bills for 2016 and beyond is set in stone unless action is taken by the Dáil.”

Separately, Revenue have confirmed that anyone whose principal private residence has been flooded and who has received support from the Department of Social Protection’s humanitarian relief fund can apply to have their 2016 property tax payment deferred.

Christine Keily, head of direct taxes at www.taxback.com, said: “The bill will be there to be paid at a later date with interest. This may not be such an attractive option when the additional interest charge is considered.”

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