The Department of Finance has said there will be "no material impact" on the overall tax take for 2014 following an error in the Local Property Tax legislation.

The mistake means that all owner-occupier property buyers in 2013 are entitled to an exemption from the property tax for the next three years.

The exemption was originally only to apply to first-time buyers and those who bought new, or unoccupied property.

A spokesperson told RTÉ News that the issue came to light in July and a decision was made not to amend the legislation.

The spokesperson confirmed that no statement was issued following the decision, adding that it was not a cause of major concern to the tax take.

Around € 3 million is expected to be refunded to thousands of households.

The Department said there will be no new tax measures to address the shortfall.

Earlier, The Revenue Commissioners said they expect a few thousand people to receive refunds in property tax.

The Revenue Commissioners said they would be writing to people affected as soon as possible, advising them that they may qualify for an exemption.