Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

309. To ask the Minister for Housing, Planning, Community and Local Government the year in which the assessment of needs were done that now inform the distribution of local property tax; his plans to repeat the exercise; if so, when that will be done; and if he will make a statement on the matter. [18028/17]

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

Local retention of Local Property Tax (LPT) began in 2015 and is now established as an alternative and essential  source of funding for the local government sector, which reduces reliance on central funding. The Government decided that 80% of the estimated LPT liability in each local authority area for a given year is retained in that area to fund public services, notwithstanding any local variation decisions. The remaining 20% of LPT is re-distributed to provide equalisation funding to those local authorities that have lower property tax bases, due to the variance in property values and density across the State. This reflects the fact that local authorities vary significantly from one another in terms of size, population, public service demands, infrastructure and income sources.

In accordance with decisions taken by Government regarding the distribution of LPT funding, every local authority has a minimum level of funding available to it known as the LPT baseline. There are variances across the country in terms of LPT levels but it is important that all local authorities in the State receive at least this minimum funding level to ensure they can deliver services. The LPT funding baseline in 2017 is linked to previous General Purpose Grant amounts and Pension Related Deductions retained by authorities in 2014.

The needs of local authorities vary significantly across the State, depending on a complex range of factors. My Department keeps the allocation mechanism under review to ensure equitable treatment of all local authorities. Matters relating to equalisation and allocation methods for future years will be reviewed as necessary and appropriate.