Oireachtas Joint and Select Committees

Wednesday, 7 July 2021

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

General Scheme of the Finance (Local Property Tax) (Amendment) Bill 2021: Discussion

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy for the questions. On the first question regarding where increases are likely to fall, I want to emphasise again that most homeowners will not see an increase and, in terms of those who do, the majority of them will move up one band and, therefore, an increase of €90. As to where they will be, there is no precise answer to that question. It depends on the value of individual homes and how they have changed versus where they were in 2013. Of the approximately 30% of homes that will see an increase of one band, some will be in Dublin. We expect others will be in counties along the east coast. In regard to those that will see an increase larger than two bands, we expect some of them to be larger properties in the midlands of the country. The Deputy asked if all of the homes that will face an increase are concentrated within particular cities. That will not be the case. It depends on how the value of the home changed versus the national average since 2013. The households that will face the largest increase will be those currently not paying the local property tax who will have to pay under the revaluation. They will move from no payment to the new LPT valuation. There is no absolute geographical definition as to where the charges will fall. Some parts of Dublin will be affected but they will be distributed alongside the eastern counties as well. While many households in those areas might see an increase, many others will see no change or, perhaps, a decrease.

On the commitment sought by the Deputy, I cannot give a detailed answer now to that question. The issue of the allocation of funding and how it is distributed is a matter for the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien. I will work with him to ensure that no local authority is worse off as a result of the changes that are being made. We will do that work in a year's time when we have implemented this revaluation, to which I know the Deputy is opposed.

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