Dáil Éireann Debate, Tuesday - 11 June 2013
135. Deputy Mattie McGrath asked the Minister for Finance if voluntary housing organisations such as Foscadh are entitled to pass on the local property tax charge to their tenants through an increase in their rent; and if he will make a statement on the matter. [26696/13]
View answerI am advised that approved housing bodies (as well as local authorities) will be liable to pay the Local Property Tax (LPT) on their properties in the same way as any other residential property owner, unless the properties in question are used to provide special needs accommodation. This refers to people who require support to enable them to live in the community, such as sheltered accommodation for the elderly or the disabled. The Revenue Commissioners have published guidelines to assist local authorities in identifying special needs accommodation. Where an LPT liability arises, the Finance (Local Property Tax) Act 2012, as amended, deems all voluntary housing body and local authority residential properties to be in the lowest valuation band for the initial valuation period (2013 to 2016), and also allows such bodies to defer their 2013 LPT liability until 2014. This is to allow such bodies to put in place arrangements for the payment of the tax and for the valuation of their properties.
I am advised by the Department of the Environment, Community and Local Government that, in accordance with section 58 Housing Act 1966, housing authorities are responsible for determining the rents of their dwellings, subject to complying with broad principles laid down by that Department, notably that the rent payable should be related to income and that low-income households should pay a lower proportion of income in rent. Within these parameters, it is a matter for housing authorities, as an integral part of their housing management functions, to ensure that their rental income reflects, as far as practicable, the cost of managing and maintaining their housing stock.
I am further advised that the current arrangements for determining local authority rents will be substantially replaced on the coming into force of section 31 of the Housing (Miscellaneous Provisions) Act 2009, which predates, and does not refer to, the Local Property Tax legislation. On enactment of the Housing (Amendment) Bill 2013 I am informed that the Minister for the Environment, Community and Local Government will be arranging to make regulations under section 31 re-affirming the principle that rents should be related to household income and composition, and reflecting the requirement that housing authorities should set rent levels that take account, as far as practicable, of the cost of providing works and services to, and managing and maintaining, their rented accommodation. The Minister also intends to ask the Housing Agency to provide the relevant guidance to housing authorities to assist them in making their rent schemes to ensure that they comply with the these Regulations.
