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

Of course, I am aware of the status of the local property tax, LPT, the proposed changes and the debate that is ensuing regarding it. This is why I recently announced a review of the LPT which will look in particular at the impact on LPT liabilities of property price developments. It will include an examination of the outstanding recommendations of the 2015 Thornhill review of the LPT. It is expected that the review will be completed at the end of August and that the review report will provide a number of policy choices for consideration. The review will be informed by the desirability of achieving relative stability, both over the short and longer terms, in LPT payments of liable persons. It will also include a consultation process to enable all interested parties and individuals to submit their views on the future of the LPT.

My Department will advance work on this matter in conjunction with the Departments of Housing, Planning and Local Government and Public Expenditure and Reform and the Revenue Commissioners. The purpose of the review will be to inform me with regard to any actions I may recommend to Government concerning the overall yield from LPT and its contribution to total tax revenue. This will enable me to revert to Government with proposals for change to the LPT in a timely way. Any such change would need to be legislated for in the first quarter of 2019 so that the Revenue Commissioners can be in a position to have the necessary administrative and technical arrangements in place in time in respect of the 2020 LPT year.

Distribution of LPT revenues to local authorities is the responsibility of the Minister for Housing, Planning and Local Government. LPT is an important source of funding to local authorities accounting for approximately one-tenth of their revenue income. LPT supplements local authority income from commercial rates, from the provision of goods and services and from other Government grants. The LPT was introduced to provide an alternative, stable and sustainable funding base for the local government sector providing greater levels of connection between local revenue raising and associated expenditure decisions. Local retention of LPT has helped to strengthen financial autonomy at local authority level. I expect that the current review will look at ways to ensure this continues.

I have not deferred any revaluation. What I have done is reminded the House of the timetable as currently laid out in the legislation passed by this House, which is a revaluation in 2019 to affect bills after that.

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