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Property Taxation Application

Dáil Éireann Debate, Wednesday - 28 November 2012

Wednesday, 28 November 2012

Questions (170, 171)

Michelle Mulherin

Question:

170. Deputy Michelle Mulherin asked the Minister for the Environment, Community and Local Government what will become of the non principal private residence charge in view of the proposed introduction of a property tax; and if he will make a statement on the matter. [53161/12]

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Michelle Mulherin

Question:

171. Deputy Michelle Mulherin asked the Minister for the Environment, Community and Local Government if the proposed property tax will be ring fenced to be spent in the local authority area if it is collected, or if it will be retained in the Central Exchequer to be distributed by way of a Local Government block grant and if so on what basis; and if he will make a statement on the matter. [53162/12]

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Written answers

I propose to take Questions Nos. 170 and 171 together.

The EU/IMF Programme of Financial Support for Ireland contains a commitment to introduce a property tax for 2012. The Programme reflects the need, in the context of the State's overall financial position, to put the funding of locally-delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for such services. It was considered that, in light of the complex issues involved, a Local Property Tax would take time to introduce and accordingly to meet the requirements in the EU/IMF Programme, the Government decided to introduce a household charge in 2012 as an interim measure. This was done via the Local Government (Household Charge) Act 2011.

An appropriate broadening of the revenue base for local government will be achieved through the Household Charge and the forthcoming full Local Property Tax. Income from the Household Charge and from a future Local Property Tax is critical in ensuring that local authorities have the necessary resources to continue to deliver services to their communities.

An independently-chaired Inter-Departmental Expert Group was established earlier this year to consider the structures and modalities for an equitable Local Property Tax to replace the Household Charge. The Group submitted its report and proposals will be brought to Government which will decide on the exact details of implementation , including the relationship between the Non Principal Private Residence Charge and the Local Property Tax, and the Local Property Tax’s role within the wider funding of local government.

The Government has decided that the Local Property Tax will be collected and administered by the Revenue Commissioners.

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