Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

399. To ask the Minister for Housing, Planning, Community and Local Government the percentage of property tax that is retained by each local authority; and if he will make a statement on the matter. [13497/17]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Local retention of Local Property Tax (LPT) commenced in 2015. Given that local authorities vary significantly from one another in terms of size, population, public service demands, infrastructure and income sources, the Government decided that 80% of the estimated LPT yield for a given year’s liability is retained locally to fund public services, notwithstanding any local variation decisions. The remaining 20% of LPT is re-distributed to provide top-up or equalisation funding to certain local authorities that have lower property tax bases due to the variance in property values and density across the State.

Equalisation in the context of LPT allocations is a process that ensures that every local authority’s LPT allocation is brought up to minimum funding level known as the LPT Baseline. The authority itself may subsequently decide to reduce its LPT rate locally in line with the power available to local authorities to vary the basic rate of LPT in their respective areas by up to 15%. In such circumstances, the LPT allocation is reduced in line with that decision and the corresponding income is foregone. In the event that a local authority decides to increase the LPT rate by up to 15%, the Government has decided that the local authority retains 100% of the additional LPT collected.