Dáil Éireann Debate, Wednesday - 27 March 2013
198. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government if Dublin City Council will retain 80% of the property tax that will be collected in their administrative area; and if he will make a statement on the matter. [15386/13]
View answer199. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government following the introduction of the local property tax, his plans for the local government fund and moneys allocated to it; his plans for the motor tax account which currently funds local government fund; and if he will make a statement on the matter. [15387/13]
View answerI propose to take Questions Nos. 198 and 199 together.
Motor tax is the principal source of revenue for the Local Government Fund in 2013. The Local Government (Household Charge) Act 2011 provides that income from the household charge is paid into the Local Government Fund.
Under section 157 of the Finance (Local Property Tax) Act 2012, commencing in 2014, the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year. The Government has recently accepted, in principle, a policy position that from 2014 80% of all Local Property Tax receipts should be retained within the local authority area where the Tax is raised. The remaining 20% of the Tax collected nationally will be re-distributed on an equalised basis to local authorities within the context of the annual allocations of General Purpose Grants.
I expect the Local Property Tax to have multiple benefits, including, a more sustainable and resilient system of funding for local authorities and therefore a sounder financial footing for the provision of essential local services; greater local scope for financial decision making concerning service provision - in particular, the inclusion of the local variation mechanism from 2015 will further increase the autonomy of local authorities; and, a strengthening of democracy at local level and a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user.
