Noel Grealish (Galway West, Independent)
Link to this: Individually | In context | Oireachtas source

435. To ask the Minister for Environment, Community and Local Government the amount of money collected in local property tax in each local authority area since its introduction; the way the money has been spent, including details of the amount which was retained locally in each case; and if he will make a statement on the matter. [8111/16]

Alan Kelly (Tipperary, Labour)
Link to this: Individually | In context | Oireachtas source

Local Property Tax (LPT) is collected and administered by the Revenue Commissioners and is remitted to the Central Fund. The Revenue Commissioners publish LPT inform ation including details of LPT collected in all local authority areas on their website at the following link: .

I am advised by the Minister for Finance that the amount of LPT received by the Exchequer in 2013 was €318 million. These receipts remained with the Exchequer to meet the State’s expenditure obligations, as the 2013 allocation to the Local Government Fund had been decided upon before the LPT came into effect in July 2013.

The local government funding model changed in 2014. Section 157 of the Finance (Local Property Tax Act) 2012 provides that an amount equivalent to the overall amount of LPT collected in a given year shall, beginning in 2014, be paid into the Local Government Fund in the same year by the Minister for Finance. €491m of LPT was paid into the Local Government Fund in 2014. The other significant income source for the Fund in 2014 was motor tax income. LPT paid into the Local Government Fund in 2014 contributed to a range of financial supports provided to local authorities, including general purpose grants. The details of these allocations are available at the following link;

.

The 2014 Local Government Fund audited annual accounts, detailing all income and expenditure from the Fund, are available on my Department’s website at the following link: . The audited accounts for 2015 are not yet available.

For 2015 and 2016, Government decided that local authorities would keep 80% of LPT collected in their areas, with the remaining 20% being re-distributed to provide equalisation funding to certain local authorities that have lower LPT bases due to the variance in property values and density across the State. This equalisation recognises that certain local authorities, whose property bases may not provide a sufficient level of LPT, require extra financial support. By contrast, some local authorities receive higher levels of funding from the Local Government Fund as a result of local retention of 80% of LPT when compared to the level of funding they previously received from General Purpose Grants. These local authorities may use this additional income, up to a maximum of 20% of overall LPT receipts for their local authority, for their own discretionary purposes, as part of their normal budgetary process. Any remaining funds must then be used to self-fund certain housing and roads functions, thereby replacing some Central Government funding.

The LPT allocations to individual local authorities, amounting to €459m for 2015 and €453m for 2016, along with details of the amounts retained locally in each local authority area, are published on my Department’s website at the following links:

Local Authority 2015 LPT Allocations :.

Local Authority 2016 LPT Allocations :.