Property Taxation Collection

Dáil Éireann Debate, Tuesday - 11 June 2013

Tuesday, 11 June 2013

Questions (549)

Pearse Doherty

Question:

549. Deputy Pearse Doherty asked the Minister for the Environment, Community and Local Government the purpose of the fees in respect of two or more properties liable in 2013 for payment of non-principal private residence and local property tax; if he will explain the use to which the fees collected will be used; the person or agency which is responsible for collection of the fees; his views on whether the agencies collecting the fees are sharing personal information on citizens and whether this is a breach of data protection; and if he will make a statement on the matter. [26915/13]

Written answers

Minister for the Environment, Community and Local Government

Local authorities are responsible for the collection of the Non Principal Private Residence Charge; the Revenue Commissioners are responsible for the collection of the Local Property Tax.

The Local Property Tax is being introduced on a half year basis this year and accordingly 50% of the Tax is payable in 2013. The amount of Local Property Tax incurred in respect of a liable property is based on that property’s value, while the Non Principal Private Residence Charge is incurred on the basis of a flat rate of €200 per liable property per annum. Therefore, it is not appropriate to assume equivalence between the Charge and the Tax.

This year will be the final year of the operation of the Non Principal Private Residence Charge. Since its introduction in 2009 the Charge has been an important source of revenue for local authorities and has funded the provision of vital local services.

Under 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; this revenue will be allocated to local authorities from the Fund. In 2013 Local Property Tax revenue will accrue to the Exchequer.

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 with 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.

The Local Government (Charges) Act 2009 and the Finance (Local Property Tax) Act 2012 include provisions for data sharing among public bodies.