Parliamentary Question addressed to the Minister for the Environment, Community and Local Government

To ask the Minister for the Environment, Community and Local Government if he will confirm that 80% of the local property tax collected in any one local authority area will be retained towards the cost of services provided in that area; and if he will make a statement on the matter.

To ask the Minister for the Environment, Community and Local Government the formula that will be used to allocate the remaining 20% of the proceeds of the local property tax not retained by the local authorities in cases where the 80% is insufficient to cover their costs; and if he will make a statement on the matter.

To ask the Minister for the Environment, Community and Local Government the number of counties in which it is envisaged that the full amount collected in the local property tax will compensate for the loss of the amounts allocated in the current year from the local government fund and collected from the non-principle private residence charge; and if he will make a statement on the matter.

Reply

Minister for the Environment, Community and Local Government (Mr. P. Hogan)

Under section 157 of the Finance (Local Property Tax) Act 2012, commencing in 2014, the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year.

The Government has indicated an intention to move, from 2014, to 80% retention of all Local Property Tax receipts within the local authority area where the Tax is raised. The remaining 20% of the Tax collected nationally will be re-distributed on an equalised basis to local authorities within the context of the annual allocations of General Purpose Grants. Pending a fuller understanding of the anticipated yield of the Tax, on a per local authority basis, and discussions to take place in the context of Budget 2014, it would be premature to comment definitively on anticipated yields or on equalisation methods.