Dominic Hannigan (Meath East, Labour)
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219. To ask the Minister for Finance if he will consider a 5% rebate from the local property tax to be provided to housing estates in county council administered areas where no estate management is undertaken by the council staff and instead is undertaken by local residents' associations; and if he will make a statement on the matter. [25691/15]

Michael Noonan (Limerick City, Fine Gael)
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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.

With regard to properties in estates where the estate has not been taken in charge by the local authority, I am advised by the Department of the Environment, Community and Local Government that the taking in charge of residential estates by local authorities is provided for under section 180 of the Planning and Development Act 2000, as amended.  Section 180(1) provides, in relation to estates which have been completed to the satisfaction of the planning authority in accordance with the planning permission, that the planning authority must, if requested to do so by the developer or by the majority of the owners of the houses involved, initiate the procedures for taking the estate in charge.

I understand that the Department of the Environment, Community and Local Government issued updated policy guidance to planning authorities on 26 February 2008 on Taking in Charge of Residential Developments/Management Arrangements.  This required each planning authority to develop or update, as appropriate, its policy on taking in charge by the end of June 2008 which is based on the following principles (among others):

- Certain core facilities/infrastructure to be taken in charge on request - public roads and footpaths, unallocated surface parking areas, public lighting, public water supply, foul and storm water drainage and public open spaces;

- The procedures for taking in charge to begin promptly on foot of a request by the majority of the residents in the development or by the developer, as appropriate.  Protocols, including time frames, must be set out by planning authorities to respond to requests for taking in charge.

With regard to properties in managed estates, to which management fees apply, such properties 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.

A requirement to pay management fees, or to contribute to estate management via a residents association, 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, or are party to resident association arrangements, 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. 

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.