Ivor Callely
Question:78 Mr. Callely asked the Minister for Finance his views on the current policy with regard to residential property tax; and his views on whether this tax is unfair and anti-Dublin due to the house values in Dublin. [19975/96]
Written Answers. - Residential Property Tax.
The Government's programme of renewal indicated that the future of residential property tax would be considered in the context of a professional study of local government financing undertaken by the Minister for the Environment. As part of the study process a report, The Financing of Local Government in Ireland, was published by that Minister on 27 June this year. I will as previously stated, evaluate all aspects of RPT when this study process is completed.
It is important to keep RPT in perspective. This year, the tax will be paid by about 23,000 households out of the total stock of approximately 900,000 owner-occupied houses in the country. Furthermore, over half of those 23,000 will be able to reduce their tax bills by claiming either marginal relief — where household income is between £30,000 and £40,000 — or child relief — a 10 per cent reduction for each dependent child. While most of the revenue raised comes from houses in Dublin, this reflects the reality that most of the country's higher value residential property is concentrated in the capital city. In addition, Dublin incomes tend to be higher than the national average which means that fewer households can claim income exemption or marginal relief.