Written answers

Thursday, 16 October 2014

Department of Finance

Property Taxation Rate

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

60. To ask the Minister for Finance his plans to provide a reduction in local property tax rates to householders who live in estates not in the charge of the local authority, in view of the fact that such householders also have to pay fees to private management companies for basic services; and if he will make a statement on the matter. [39695/14]

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

The Government decided that a liability to the Local Property Tax (LPT) should apply to all owners of residential property with a limited number of exemptions.  Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. A requirement to pay management fees is not relevant in determining liability to the LPT.

Generally, properties in managed estates, to which such fees apply, would have been purchased by their owners in the knowledge that they would be taking on commitments to partake in and to fund the management of the estate, and that it was the intention that many such estates would not be taken in charge by local authorities, nor would it be appropriate for local authorities to do so.  Management fees in these estates generally relate to the maintenance, upkeep and insurance of private property and may, in some instances, include services such as refuse collection and a sinking fund for certain repairs to the buildings which most residential property owners, who do not pay management fees, also have to meet. The provision of a relief for those who pay management fees without regard to the vast bulk of homeowners who have to meet the cost of similar necessities in respect of their own properties would be inequitable. 

Revenue from the LPT accrues to local authorities, and supports the provision of local services.  Local authorities provide a broad range of services in the public realm which benefit the wider community, the proper functioning of which are important for the wellbeing of every community and household.  These include fire and emergency services; road maintenance and cleaning; street lighting; spatial and development planning and other similar services; regulatory and inspection functions and business support services, as well as libraries, parks, and other recreation and cultural public amenities.

I have no plans to provide a reduction in local property tax rates for householders who are liable for both the local property tax and private management fees.

Comments

No comments

Log in or join to post a public comment.