Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

I thank the Deputy for raising this issue which I am taking on behalf of the Minister, Deputy Alan Kelly.

The Government decided to make local authorities liable for the local property tax in order that local authority tenants would be treated in the same way as tenants in the private sector in which landlords may pass on the cost of the tax to tenants in the form of increased rents, if they so wish. Thus, the Finance (Local Property Tax) Act 2012 provides that local authorities are liable to pay LPT in respect of dwellings that they own, other than dwellings that accommodate persons with special housing needs. Under the Act, chargeable local authority residential properties are deemed to be in the lowest valuation band until 2016, at least, and the annual LPT liability is €100 per local authority dwelling.

Housing authorities are responsible, under section 58 of the Housing Act 1966, for determining the rents of their dwellings, subject to relating rent levels to household income and requiring low income households to pay a lower proportion of income in rent. Within these parameters, it is a matter for housing authorities to ensure their rental income reflects, as far as practicable, the cost of managing and maintaining their housing stock. Section 58 of the 1966 Act does not empower councils to levy a specific charge on tenants in respect of LPT. However, under the enactment, they may set rents at levels that will generate funds to pay for expenses relating to their tenanted accommodation, including their LPT liability. It is entirely a matter for housing authorities to decide if they wish to do this and the Minister has no function in the matter. It would not be appropriate, therefore, for me to comment on the manner in which individual councils, including Limerick City and County Council, exercise their statutory rent functions.

Section 31 of the Housing (Miscellaneous Provisions) Act 2009, as amended, provides for the introduction of a national differential rents framework that will result in a significant harmonisation of local authority rent levels nationally, while retaining some discretion for individual authorities in setting rents in their areas. Under this legislation which contains similar provisions to section 58 of the 1966 Act in regard to charges, local authority rents will continue to relate to household income and composition and contributing to the cost of managing and maintaining the tenanted housing stock.

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