Olivia Mitchell (Dublin South, Fine Gael)
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545. To ask the Minister for Environment, Community and Local Government if it is envisaged that the proceeds of the local property tax in a full year will be sufficient to replace the current Local Government Fund; and if he will make a statement on the matter. [27251/13]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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548. To ask the Minister for Environment, Community and Local Government if the proceeds from property tax are directly linked to Government grants to local authorities under his Department; if there is any commitment regarding link between where the property tax is raised and where it will be spent; if there will be any restrictions at that stage on the way a local authority spends the additional tax or if it will be up to the local authority to decide; and if he will make a statement on the matter. [26846/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 548 and 545 together.

Under the Finance (Local Property Tax) Act 2012, commencing in 2014 the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year; this revenue will be allocated to local authorities from the Fund. In 2013 Local Property Tax revenue will accrue to the Exchequer.

The Government has indicated an intention to move, from 2014, to 80% retention of all Local Property Tax receipts within the local authority area where the Tax is raised. The remaining 20% of the Tax collected nationally will be re-distributed on an equalised basis to local authorities within the context of the annual allocations of General Purpose Grants.

The 2013 Local Government Fund General Purpose Grant allocations to local authorities total €640.9m. Pending a fuller understanding of the anticipated yield of the Local Property Tax, on a per local authority basis, and discussions to take place in the context of Budget 2014, it would be premature to comment definitively on anticipated Local Property Tax yields or on details of the broader mix of revenue streams which local authorities will receive in 2014.