Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

149. To ask the Minister for Environment, Community and Local Government the current status on regulations guiding local authorities who wish to reduce the local property tax with the +- 15% limits; when he will publish the guidelines; and if he will make a statement on the matter. [28900/14]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Effective from 1 July 2014, local authorities may vary the rate of Local Property Tax (LPT) in their administrative area for the following year by up to 15% of the basic rate of the Tax. The decision must be taken by resolution of the Council and must be notified to the Revenue Commissioners by 30 September in order to apply for the following year.

There are certain factors that local authorities are legislatively bound to take into account when deciding whether or not to vary their LPT rates for a given year (expected income and expenditure, accumulated assets and liabilities and the impact of any variation on their local area). The decision is not one that can be taken without considering the financial implications as it will have a direct impact on the level of funding available to local authorities and, therefore, on their ability to discharge their statutory responsibilities.

The Local Property Tax (Local Adjustment Factor) Regulations 2014 set out the process for local authorities who wish to vary their LPT base rates, including the factors that they must consider and the type of public consultation that they should undertake as part of that process. I have also issued guidance to local authorities concerning matters relating to the se R egulations ; this guidance is available on my Department’s website at

The power to vary LPT rates has been given to local authorities to further increase their autonomy. Elected members are already responsible for finalising the annual budget of the local authority – it is a reserved function for them – and the power to vary LPT rates will enable them to directly influence the level of LPT income they have to meet their expenditure requirements in the future.