Michael Healy-Rae
Question:104. Deputy Michael Healy-Rae asked the Minister for Finance his views on the property tax (details supplied); and if he will make a statement on the matter. [23505/13]
View answerThursday, 16 May 2013
Questions (104)
Written answers
As I outlined in my speech to this House on Budget Day and subsequently throughout the passage of the Finance (Local Property Tax) Act 2012 through the Oireachtas, from 1 January 2015 local authorities will have discretion to vary the rate by 15% above or below the national central rate. This is not new information, it was made clear when the legislation was first published. It is preferable that local councillors have a specific electoral mandate to vary the rate, which will be possible following the local elections in 2014.
The Government sees the necessary introduction of the LPT as an opportunity for very real political reform at Local Government level. The LPT will provide a stable funding base for the local authority sector, incorporating appropriate elements of local authority responsibility. Providing local authorities with significant responsibility for raising local revenue has the potential to increase the level of oversight of local authority operations by the electors and thereby strengthen democracy at local level. This will strongly reinforce local democratic decision-making and will encourage greater efficiency by local authorities on behalf of their electorates.
For the purposes of Local Property Tax (LPT), the initial property valuations for the valuation date of 1 May 2013, will be valid up to and including 2016. The next valuation date will be 1 November 2016 which will cover the period 2017 to 2019.
The national central rate of LPT is 0.18% for properties valued up to €1 million with the liability calculated based on the mid-point of the appropriate band. The national central rates for properties valued over €1 million are 0.18% on the first €1 million and 0.25% on the excess value over €1 million with no banding applied. The Government has committed not to amend these rates for the lifetime of this Government.