Brian Stanley (Laois-Offaly, Sinn Fein)
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17. To ask the Minister for Environment, Community and Local Government the way in which local authorities can be expected to vary the rate of local property tax before they know the level of funding they will receive from his Department for 2015. [19463/14]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Under section 20 of the Finance (Local Property Tax) Act 2012, as amended, a local authority may, as a reserve d function, and subject to any regulations made under the section, resolve to vary the base rate of the Local Property Tax (LPT) within its functional area by a maximum of plus or minus 15%. This power will be available to local authorities effective from 2015, as the relevant sections of the Act will come into operation on 1 July 2014.

The Revenue Commissioners must be notified no later than 30 September 2014 of the details of any decision made in respect of the local adjustment factor for 2015 and I understand that Revenue reminded local authorities of this requirement recently. I also understand that the Revenue Commissioners released details of the levels of LPT collected in local authority areas in 2013 earlier this year and, more recently , provided details of the levels of LPT collected so far in 2014, which should provide a useful information source for local authorities; this information is available on the Revenue website –

I expect the Local Property Tax to have multiple benefits, including a more sustainable and resilient system of funding for local authorities and, therefore, a sounder financial footing for the provision of essential local services; greater local scope for financial decision-making concerning service provision; and a strengthening of democracy at local level with a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user.

The implementation of the local variation mechanism for LPT from 2015 will further increase the autonomy of local authorities and Section 20 of the Finance (Local Property Tax) Act 2012, as amended, requires local authorities to have regard to a number of factors in making their decision in this regard, including: the local authority’s estimation of the income it will receive and the expenditure it will incur in the period for which the varied rate is to have effect; the financial position of the local authority, including the amounts standing as its accumulated assets and liabilities not less than one month before the date on which it is proposed to pass the resolution; and the local authority’s estimation of the financial effect of the varied rate on the economy of its functional area, including on those persons who will be liable to pay the tax.

My Department will continue to engage with local authorities to ensure that they are provided with the information necessary to assist them in their deliberations at the earliest possible stage.

Barry Cowen (Laois-Offaly, Fianna Fail)
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18. To ask the Minister for Environment, Community and Local Government if local authorities will receive 80% of the local property tax in 2015; and if he will make a statement on the matter. [19552/14]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Government has indicated an intention to move to 80% retention of all Local Property Tax receipts within the local authority area where the tax is raised.

This year, the establishment of Irish Water presents local government with significant organisational and financial challenges. Service provision responsibilities are moving from the local authorities to Irish Water, infrastructure is being transferred, financing arrangements have altered and local authorities are operating on behalf of Irish Water under Service Level Agreements. These changes must be managed.

In this context, it was necessary to defer defining a certain proportion of the proceeds of the Local Property Tax to be retained in each local authority for 2014.

In 2015, in addition to the changes in water services funding, local authorities will be required to implement changes to their budget process arising from EU obligations, which will require them to prepare draft budget strategies by the end of September 2014. Together, these are significant changes to the current local government funding model and it is essential that the impacts are fully assessed and that the effect on overall Exchequer funding is managed appropriately.

I expect the Local Property Tax to have multiple benefits, including a more sustainable and resilient system of funding for local authorities and, therefore, a sounder financial footing for the provision of essential local services; greater local scope for financial decision-making concerning service provision; and a strengthening of democracy at local level with a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user.

My Department will continue to work with local authorities to ensure that they have an appropriate level of information, including in relation to LPT retention, to facilitate their budget process for 2015.