Catherine Murphy (Kildare North, Social Democrats)
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17. To ask the Minister for Finance if the cross departmental group that is reviewing the local property tax is considering including demographic changes following the publication of the census of population in respect of local government funding; if workforce planning and asset deficiencies respectively will play a part in its remit; and if he will make a statement on the matter. [45094/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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My Department will consider issues relating to the implementation of the outstanding recommendations in the 2015 Thornhill Review of LPT in due course in line with the 2019 timeline. The position of the Government will be made clear so that households will know well advance what its plans are for LPT. I consider it very important that the principle that formed a central part of the terms of reference for the 2015 review of LPT i.e., achieving relative stability in LPT payments of liable persons both over the short and longer terms, will inform our consideration of this matter.

I expect the Department of Finance will commence work on this matter in the New Year in conjunction with the Departments of Public Expenditure & Reform, Housing, Planning & Local Government and Revenue.

Dr Thornhill made a number of recommendations in his 2015 report on his review of the Local Property Tax. His central recommendation was for a revised system whereby a minimum level of LPT revenues in each local authority area would be determined by Government, ideally having regard to the apportionment between local authority areas of the historic yield. This in turn would allow for the estimation of LPT rates for each local authority area and the application of these by taxpayers and Revenue. Local authorities could adjust this rate upwards by a factor of up to 15%. This new system was recommended by Dr Thornhill with a possible interim deferral of the next valuation date until November 2018 or November 2019.

My predecessor subsequently proposed to Government that the revaluation date for the LPT be postponed from 2016 to 2019. This postponement meant that home owners were not faced with significant increases in their LPT in 2017 as a result of increased property values. The postponement also gives sufficient time for the other recommendations in Doctor Thornhill's report to be considered fully by the Government.

The Finance (Local Property Tax) (Amendment) Act 2015 gave effect to the postponement of the revaluation date of residential property for LPT purposes, and also to two of the recommendations in Dr Thornhill's report, involving LPT relief for properties affected by pyrite and relief for properties occupied by persons with disabilities.