Thomas Gould (Cork North Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

360. To ask the Minister for Housing, Planning, and Local Government if local authorities retain 100% of the local property tax paid by them in regard to social housing. [37764/21]

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Finance (Local Property Tax) Act 2012, as amended, sets out the position concerning residential properties and liability for the Local Property Tax (LPT). Under the Act, local authorities are, in general, liable for residential properties under their ownership in the same way as any other residential property owner. Local authorities value their residential properties in lowest Valuation Band (€0 - €100,000) for the liability date of 1 May 2013. This gives rise to an annual liability of €90, subject to any 'local adjustment factor' to the LPT basic rate by the relevant Local Authority.

Local retention of LPT began in 2015 and since then the overall principles and allocation methodology have broadly remained the same. 80% of LPT is retained in the area it is collected, with the other 20% supporting equalisation for local authorities with LPT bases lower than their funding baseline.

The Programme for Government 'Our Shared Future', commits to bringing forward LPT reforms. These reforms will involve bringing new homes, which are currently exempt from LPT, into the taxation system as well as providing for all money collected locally to be retained within the county. This will also be done on the basis that those counties with a lower LPT base are adjusted via an annual national equalisation fund paid from the Exchequer, as is currently the case.

My colleague, the Minister for Finance, recently published the Heads of the Finance (Local Property Tax) (Amendment) Bill 2021. The Bill will give effect to a package of measures in line with the Programme for Government to address the future of the LPT. Minister Donohue also signalled the Government’s intent to move to 100% local retention from 2023. Any changes to the allocation process may be considered in that context.