Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank all the Senators who contributed to the debate. It is clear that the Minister for Finance’s decision to allow the next Government the space, and to seek the mandate from the people, to make any necessary amendments or tweaks to the policy of local property tax, LPT, is prudent. My view and that of the Minister and the Government is that LPT is an important form of taxation and revenue. It provides a stable source of funding. Most people, except Sinn Féin, broadly accept that, with views on some amendments and tweaks. We will have the opportunity to debate that during the election campaign.

I join with Senators in thanking Dr. Thornhill for his work. I thank Senator Quinn for sharing the information that it is Dr. T. K. Whitaker’s 99th birthday today. I send him my best wishes. It is lovely to have an opportunity to pay tribute to two very fine public servants.

The introduction of the LPT tax in 2013 was the largest extension of self-assessment in the history of the State with more than 1.3 million taxpayers obliged to file LPT returns and pay tax in respect of approximately 1.9 million properties. The first valuation date was 1 May 2013 and the valuations declared on that date have defined the liabilities for 2013-16. The next valuation date was due on 1 November 2016 and it was envisaged that would set the rates for 2017-19. This Bill, in its simplest form, will defer that valuation from 2016 to 2019. This postponement means in real terms that home owners will not be faced with significant increases in their LPT in 2017 as a result of increased property values and will provide space for the debate that Senator Hayden alluded to in terms of her own views on how she would like to see the tax evolve over time. The LPT is producing a stable revenue yield for local authorities, although the rates are modest by international comparisons. The charging structure of LPT is progressive, as the basic rate of 0.18% applies up to property values of €1 million, with the higher rate of 0.25% applying on the portion of value above the €1 million threshold. The introduction of a property tax is part of a broader approach to taxation of property which aims to replace some of the revenue raised from transaction-based tax.

Senator Norris, who wanted to trivialise the issue of income tax, by talking about the weather, misses the point entirely. There is copious documentation and there are international studies he can read which describe that when work is taxed and governments continue to heap tax on income, it affects employment. The Senator can read them and come back to me with his views.