Wednesday, 14 January 2015
Department of Finance
Property Tax Yield
€491 million was collected in Local Property Tax (LPT) receipts in 2014 against a Budget 2014 forecast target of €550 million. The Budget 2014 forecast assumed that prepayments in 2014 of 2015 LPT liabilities would be similar to the significant pre-payments for 2014 liabilities of c. €75 million that were made in November and December 2013. However, there has been a significant behavioural change with a shift towards phased payments for 2015 LPT and pre-payments received in 2014 for 2015 are some €35 million lower than expected. In addition, fourteen of the thirty-one local authorities reduced the LPT rate that will apply for 2015, which has also impacted on the pre-payments received. Furthermore, following a review carried out by the Revenue Commissioners on payment methods and patterns, the Commissioners extended the payment deadline of the 1st of January 2015 to 7 January to take account of the holiday period and to avoid property owners having to pay their LPT before Christmas.
Finally, the target for 2014 LPT included an indicative estimate of additional Household Charge monies to be collected by Revenue. I am advised that, over the course of the year, as Revenue worked these cases, it became clear that a significant number of properties were exempt or not liable for Household Charge and so additional payments did not arise for these properties.