High Local Property Tax compliance rates in Galway

Galway City had the third-highest compliance rate in the country for payment of Local Property Tax in 2017, according to new figures from the Revenue Commissioners.

In total, €23.7 million was collected in LPT from Galway City and county last year – up from €22.3m the previous year.

The city recorded a compliance rate of 99.1% – behind both South Dublin and Clare at 99.4% and Fingal County Council at 99.2%. The national average was 97%, the figures show.

A total of €8.2m was collected from 32,200 properties in the city – up from €8.1m in 2016 from 32,000 properties. In 2016, the rate in Galway City was 98.7%.

In County Galway, the compliance rate for 2017 was 98.4%, equating to a total of €15.5m from 72,100 properties. The compliance rate was unchanged from 2016.

The lowest compliance rate for LPT collection last year was 93.6% in Donegal – also the lowest in 2016 at 92.6%.

The Revenue report also shows that 500 properties were declared exempt from the LPT in 2017 in Galway City (1% of stock), along with 1,700 in the county (3.5% of housing stock). The highest exemption rate was in Dublin City at 13.6%, with the lowest in Monaghan at 1.1%.

Properties can be exempted for a variety of reasons including long-term illness; pyrite damage; the home of a severely incapacitated person; unfinished estates and homes unsold by builders.

In Co Galway, 3.9% of liable homeowners had the LPT mandatorily deducted from their salary/pension, compared to 1.5% in the city. The highest such rate was Co Cork at 9% and lowest was Leitrim at 0.8%.

Homeowners can also apply for deferrals of payment if they are below the income threshold (the person liable must have income below €15,000 for a full deferral or below €25,000 for a partial deferral). Deferrals can also be granted if the person liable if they are the executor of an estate, if they have suffered significant financial loss or are insolvent.

The deferral rate in Galway City for 2017 was 1.2% (800 properties) and 3.6% in the county (2,200 properties). The highest deferral rate was in Dublin City at 12%, with the lowest in Longford at 1%.

When Revenue carried out initial valuations on properties across the county for the LPT’s introduction in 2013, in Galway City, 19.4% were in the €0 to €100,000 band; 30.1% in the €100,000 to €150,000 band; 27.5% in the €150,000 to €200,000 band; 11.8% in the €200,000 to €250,000 band; 4.7% in the €250,000 to €300,000 band and 6.5% over €300,000.

After city homeowners self-assessed for the valuations, 43% remained in the band in which they had been evaluated by Revenue; 30% moved one band lower; 10.6% two bands lower and 2.3% three or more bands lower, while 7% moved one band higher; 7% two bands higher and 4% moved three or more bands higher.

In County Galway, 35% of homes were initially valued by Revenue in the €0 to €100,000 band; 32.3% in the €100,000 to €150,000 band; 22.8% in the €150,000 to €200,000 band; 5.6% in the €200,000 to €250,000; 2.1% in the €250,000 to €300,000 band and 2.3% in the band over €300,000.

After self-valuations, 44% remained in the same band; 27.6% one band lower; 10% two bands lower and 0.5% three or more bands lower, while 9.7% moved one band higher; 4.8% two bands higher and 3.3% three or more bands higher.

According to Revenue, 1,500 valuations increased during 2017 – through challenges made by Revenue and through self-correction.

“Nationally during 2017, more than 300,000 compliance letters issued, covering all LPT and HHC (Household Charge) liabilities for years 2012 to 2017 inclusive.

“In the vast majority of these cases, property owners went on to comply fully with their LPT payment obligations, either on a phased basis or by way of a single payment. However, a relatively small number of taxpayers chose to remain non-compliant, leaving Revenue with no alternative other than to deploy debt collection/enforcement measures or other sanctions, to secure payment.

“In 2017, 755 cases were referred to the Sheriff/External Solicitors for collection. More than 12,930 tax clearance requests were refused due to LPT non-compliance, of which almost 97% were subsequently granted clearance when payment arrangements were agreed.

“During 2017, Revenue also imposed almost 9,800 Income Tax and Corporation Tax surcharges on foot of LPT non-compliance. Of these, approximately 70% were subsequently mitigated, when reviews were requested, following discussions between Revenue and the relevant property owners.

“Revenue deducted 2017 LPT from the salaries or pensions of almost 79,000 property owners, of which more than half ‘rolled over’ from mandatory deductions applied in 2016.

“To date, more than 12,500 valuations have been increased, arising from a combination of self-correction and Revenue challenges, with approximately 1,500 valuations increased during 2017,” the Revenue report reads.