Dáil Éireann Debate, Thursday - 20 December 2012
56. Deputy Pearse Doherty asked the Minister for Finance if he will provide an estimate of the cost of administering and collecting the proposed new property tax and household charge arrears in 2013; if he will provide an estimate of administering and collecting the household charge in 2012; and if he will indicate in the budget 2013 documentation where account has been taken of any increased cost. [57388/12]
View answerThe Revenue Commissioners will be resourced to ensure the successful implementation of the Local Property Tax. The additional resources required for 2013 are noted in the Department of Public Expenditure and Reform Expenditure Report 2013. The information requested by the Deputy is set out in Page 52 of the Expenditure Report 2013. The Estimate cost for implementation of Property Tax in 2013 is €25.9 million. In line with standard costs associated with administering and collecting taxes, it is expected that Administrative Budget provisions equivalent to 2% of the annual property tax yield will be required in 2014 and 2015, decreasing to 1% after 2015.
With regard to the Household Charge arrears for 2013, it is not possible to say at this stage what the estimated cost of administering this will be but it is not likely to be as high as the standard cost of 2% of the tax yield, given the likelihood of significant efficiencies being achieved in the collection of any such arrears when those arrears are effectively re-characterised as Local Property Tax from July 2013 onwards. The cost of administering and collecting the Household Charge in 2012 and arrears up to end June 2013 are a matter for the Local Government Management Agency (LGMA) and my colleague the Minister for Environment, Community and Local Government.
