Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

176. To ask the Minister for Finance if he will set out for each local authority area the loss of revenue based on 2014 data that would arise in respect of the local property tax if the maximum allowable variation is applied in each area in 2015; and if he will make a statement on the matter. [32684/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In accordance with section 20 of the Finance (Local Property Tax) Act 2012 (as amended) elected members of a local authority are required to pass a formal resolution in order to vary the basic rate of Local Property Tax (LPT) in respect of residential properties situated within their functional area.  Both the 0.18% and 0.25% LPT rates, which must be changed at the same time and by the same factor, can be increased or decreased by up to 15%. This is the maximum allowable variation that can be applied by any local authority and is referred to as the "local adjustment factor" (LAF).

I am informed by the Revenue Commissioners that a reduction in the LPT rates by 15% in 2015 would result in a corresponding reduction of 15% in the amount of LPT payable for that year per local authority. In relation to the Deputy's request for an estimate of the loss of revenue based on 2014 data, I am advised that compliance data in relation to LPT is available broken down by city and county councils nationally and the most up to date figures for LPT collected in 2013 and 2014 were published on 16 April 2014 on the Commissioners' website at: . The Commissioners have confirmed that more up-to-date data and analysis will be published shortly.

I am further advised that the 2014 yield figure set out in these published statistics includes payments received from some local authorities for their 2013 LPT liability (payment was due on 1 January 2014), payment of arrears in relation to 2013 LPT and Household Charge payments made as a result of compliance activity by the Revenue Commissioners. As most of these amounts will be non-recurring, the projected annual yield from LPT alone is estimated to be in the region of €500m. Consequently, the Commissioners have confirmed that a 15% reduction in the basic LPT rate in 2015 by each city and county council would reduce the estimated LPT yield by €75m nationally.  Precise details of how this estimated €75m reduction would be spread across the local authorities are not currently available but the Deputy will be able to arrive at a reasonable approximation using the published data, which has also been made available to local authorities for their information.