Oireachtas Joint and Select Committees

Tuesday, 6 July 2021

Joint Oireachtas Committee on Housing, Planning and Local Government

Proposed Changes to Local Property Tax: Discussion

Photo of Paul McAuliffePaul McAuliffe (Dublin North West, Fianna Fail)
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I thank the witnesses for being with, particularly so soon after the Government announcement on this issue. As the Fianna Fáil spokesperson on local government, I have received numerous queries, as, I am sure, have other members, from councillors throughout the country with regard to how this will be implemented. I am conscious that some of my questions may be relevant to the Department of Housing, Local Government and Heritage but I will do my best limit them to the witnesses' areas of expertise. I would appreciate any responses they can offer.

The modelling is interesting. It is the only way of predicting what the changes will be. Taking the first category of those with properties valued at under €100,000 who pay €90 as an example, what will be the change for them?

My second question relates to the collection process. We are continuing with the self-assessment model. I dealt with a huge volume of queries in respect of the initial system under which people were required to make suggested valuations. In many cases, the latter did not match the value of the properties and appeals were required. The valuation process for the new estates will be a tricky process in that they may contain many properties built at the same time and, as such, there will be no comparator. I ask the witnesses to elaborate on that process. The idea of suggested valuations should be avoided. While it did not mislead people, it led to people paying more than they should have paid.

My third question relates to the period of notification for the Revenue. This poses a real challenge for local authority members in that they must notify Revenue in September, even though local authorities do not have clarity on their budgets until October or November. This allows councillors a free vote on the LPT and means that they do not have to contemplate the implications this will have for those budgets. I urge Revenue to look at that again. There is a political accountability issue here. Councillors welcome that local authorities will be able to retain 100% of the LPT collected in their area. That is important. However, councillors are telling me that they are terrified there will be a repeat of what happened previously, that is, the LPT will replace existing grants. This will be new money and the Department will have to give new money to local authorities that do not take in LPT funding. What increase in funding is available as a result of the decision to retain 100% in some counties and to, therefore, top up the local government fund in other counties?