Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 135, 137 and 146 together.

The introduction of the local property tax will provide a more sustainable funding model for local government, will devolve greater responsibility for financial decisions to local level, and will help renew the relationship between the citizen and his or her local authority. In introducing the Act, the Government has been keen to ensure that equity is seen to be preserved and that all sectors of society are required to make a fair and equitable local property tax contribution. In that regard, the relationship between the value of a residential property and the amount of the local property tax liability is important, as is liability for certain categories of social housing.

The Finance (Local Property Tax) Act 2012 sets out the position concerning residential properties and liability for the local property tax. Under the Act local authorities and approved housing bodies are, in general, liable for residential properties under their ownership. The existing arrangements for determining local authority rents are currently under review, under the relevant provisions of Housing (Miscellaneous Provisions) Act 2009, in terms of providing for new rent schemes in 2014, and I anticipate that these new schemes will provide for an appropriate contribution to be made by tenants of liable social housing properties.

Section 7 of the Act provides that owners of residential properties which are charities or which are bodies established by statute are not liable for the tax provided that such properties are used solely or primarily to provide special needs accommodation. Certain accommodation provided by local authorities and by approved housing bodies would therefore be exempt from the local property tax.

Consideration is being given to the mechanisms for the pay over of social housing related local property tax liabilities, and associated issues are receiving attention, informed by ongoing contact with the local government sector and approved housing bodies. I am working with the Minister for Finance, Deputy Noonan, with a view to implementing a set of arrangements that are effective, efficient and equitable. Local authorities and approved housing bodies will be informed of these arrangements in due course.

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