Brendan Smith (Cavan-Monaghan, Fianna Fail)
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162. To ask the Minister for Finance if he will clarify matters in relation to the property tax; the estimate for a full year of this tax and if estimates are available for each county; the estimate for the full County of Dublin, including the four local authorities; if the proceeds from property tax will go into general Exchequer; when the power for a local authority to increase the tax will commence; and if he will make a statement on the matter. [26846/13]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that Local Property Tax (LPT) Returns, personalised letters and an LPT Guide issued earlier this year to owners of 1.69 million residential properties either by post or by way of their ROS (Revenue Online Service) inbox.

The Commissioners have confirmed that at the end of the extended deadline 1,539,822 LPT Returns have been filed. I am further informed that this number is now in excess of 1.55 million.

As the Deputy will appreciate, the Commissioners' focus is on processing the Returns, dealing with correspondence, telephone calls and payment processing. It is therefore not possible at this time to provide the details requested by the Deputy until the Revenue Commissioners have had time to carry out the necessary analysis of the returns filed and payments.

For completeness sake, the Deputy should note that in light of the arrangements provided for local authorities and social housing associations in the Finance (Local Property Tax) (Amendment) Act 2013, discussions are taking place on the most practical approach to securing LPT returns from those bodies. Where local authorities and social housing associations are liable for LPT, payment is not due until on or before 1 January 2014.

I can confirm that the proceeds of the LPT will go into the Central Fund. Section 157 of the Finance (Local Property Tax) Act 2012 provides that, commencing in 2014, the Minister for Finance shall pay into the Local Government Fund an amount equivalent to the LPT, including any interest paid thereon, paid into the Central Fund during that year. The Minister for the Environment, Community and Local Government has recently confirmed that the Government has accepted, in principle, a policy position that from next year 80% of all Local Property Tax (LPT) receipts should be retained within the local authority areas where the properties are based.

From 1 January 2015 local authorities will have discretion to vary the rate by 15% above or below the national central rate. The national central rate of LPT is 0.18% for properties valued up to €1 million with the liability calculated based on the mid-point of the appropriate band. The national central rates for properties valued over €1 million are 0.18% on the first €1 million and 0.25% on the excess value over €1 million with no banding applied. The Government has committed not to amend the national central rates for the lifetime of this Government.