Written answers

Wednesday, 11 March 2015

Department of Finance

Legislative Measures

Photo of Dominic HanniganDominic Hannigan (Meath East, Labour)
Link to this: Individually | In context | Oireachtas source

56. To ask the Minister for Finance his views on amendments to the property tax legislation to take account of persons, who are also paying an estate management fee; and if he will make a statement on the matter. [10619/15]

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

The introduction of a local property tax is part of a broader approach to the taxation of property. The aim is to replace some of the revenue from transaction based taxes, which have proven to be an unstable source of Government revenue, with an annual recurring property tax, which international experience has shown to be a stable source of funding. 

The Government decided that the LPT should be centred on the principles of equity, transparency and simplicity; and that a universal liability should apply to all owners of residential property with a limited number of exemptions and reliefs.  Limiting the reliefs available allows the rate to be kept to a minimum for those liable persons who do not qualify for relief.

Properties in managed estates, to which management 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 can include services such as refuse collection, maintenance of common areas as well as a sinking fund for certain repairs to the buildings, depending on circumstances. These are costs which homeowners in other households have to fund themselves for their own properties.

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 these services 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.  The benefits of these services accrue to all members of society.

A requirement to pay management fees is not relevant in determining whether a property is subject to the LPT.  Accordingly, whilst those who are liable for management fees to property management companies may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees.  There are no plans to change the basis of liability to LPT. 

Comments

No comments

Log in or join to post a public comment.