Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Finance if there are plans for the payment people make to management companies to be taken into account when they are paying the local property tax; and if he will make a statement on the matter. [9317/13]

Michael Noonan (Limerick City, Fine Gael)
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The Government agreed with the recommendation of the “Thornhill Group” (the inter-Departmental Group, chaired by Dr Don Thornhill, which considered the structures and modalities of a property tax) that a universal liability to the Local Property Tax should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. The Finance (Local Property Tax) Act 2012 provides for a number of specific exemptions from the charge as well as the possibility of deferring the charge in certain cases of hardship.

A requirement to pay management fees is not relevant in determining liability. Accordingly, whilst those who are liable for management fees to property management companies may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees.

Revenue from the Local Property Tax will accrue to local authorities and will support the provision of local services. Local authorities provide a broad range of services in the public realm which benefit the wider community and the proper functioning of which are important for the wellbeing of every community and household. These include:-

- fire and emergency services;

- road maintenance and cleaning;

- street lighting;

- spatial and development planning and other similar services;

- regulatory and inspection functions and business support services, as well as libraries, parks, and other recreation and cultural public amenities.