Oireachtas Joint and Select Committees

Thursday, 9 November 2017

Joint Oireachtas Committee on Housing, Planning and Local Government

Local Government Finance: Discussion

9:00 am

Mr. Tom Moylan:

I point out to Deputy Barry that nowhere in our submission do we call for an increase in local property tax. What we do call for, however, is the need for a review of the practice of using 2014 as the baseline for the general purpose element that our member authorities receive from the local property tax. That is our demand in the paragraph highlighted by the Deputy. In 2016, for example, €473 million was taken, or could potentially have been taken in 100% of the local property tax. Based on the 2014 baseline, €282 million of that goes back to local authorities for general purpose use while the rest comes back in capital allocations. What we are saying is that the general purpose figure, as based on 2014, needs to be increased to meet the ever-increasing day to day expenditure of our member authorities. What we are looking for, effectively, is that some of the portion of the local property tax that goes towards capital projects be moved back towards general purpose use. How would one then fund the capital element? This would just have to come out of the Central Fund. Nowhere in our submission, however, do we look for an increase in the local property tax. In line with the national criteria set down by the Oireachtas, our member authorities can either increase or decrease this tax by up to 15%. I want to make clear, however, that we do not call for this anywhere in our submission.

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