Cian O'Callaghan (Dublin Bay North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

189. To ask the Minister for Finance his views on the Management Fees (Local Property Tax) Relief Bill 2018; and if he will make a statement on the matter. [16337/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Upon the introduction of the Local Property Tax (LPT), the Government decided that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions and no deductions. Limiting the exemptions and deductions available allows the rate to be kept low for liable persons who do not qualify for an exemption.

The proceeds of the LPT are largely used in the general provision and maintenance of infrastructure, services and amenities in a local authority area, such as the maintenance and provision of public roads, footpaths, lighting, open spaces, surface water drainage and other public amenities. All property owners benefit from this expenditure in their locality, regardless of whether they are obliged to pay management fees or not.

An individual that pays management fees may also receive services such as bin collection, maintenance of common areas and a sinking fund for needed repairs. These are costs that those who do not pay management fees, or who live in housing estates that do not pay management fees, must meet from their own means.

A requirement to pay a management fee or service charge to property management companies is not relevant in determining whether a property is subject to the LPT. There is no specific exemption for the payment of management fees, nor is there provision to offset the amount paid on management fees against LPT. It was for these reasons that Government was not in favour of the Management Fees (Local Property Tax) Relief Bill 2018 at the time the Bill was proposed.

I have no plans to include a provision on management fees in the Finance (Local Property Tax) (Amendment) Bill 2025.