Dáil Éireann Debate, Tuesday - 1 July 2014
341. Deputy Dominic Hannigan asked the Minister for the Environment, Community and Local Government if his Department is drafting the regulation that is necessary for county councils to enact the reduction in the property tax by 15% that is allowed by the local property tax legislation; when he expects it to be published and enacted; and if he will make a statement on the matter. [28440/14]
View answerEffective from 1 July 2014, local authorities may vary the rate of Local Property Tax (LPT) in their administrative area for the following year by up to 15% of the basic rate of the Tax. The decision must be taken by resolution of the Council and must be notified to the Revenue Commissioners by 30 September in order to apply for the following year.
There are certain factors that local authorities are legislatively bound to take into account when deciding whether or not to vary their LPT rates for a given year (expected income & expenditure, accumulated assets and liabilities and the impact of any variation on their local area). The decision is not one that can be taken without considering the financial implications as it will have a direct impact on the level of funding available to local authorities and, therefore, on their ability to discharge their statutory responsibilities.
The power to vary has been given to local authorities to further increase their autonomy. Elected members are already responsible for finalising the annual budget of the local authority – it is a reserved function for them – and the power to vary LPT rates will enable them to directly influence the level of LPT income they have to meet their expenditure requirements in the future.
The Local Property Tax (Local Adjustment Factor) Regulations 2014 (SI 296 of 2014) set out the process for local authorities who wish to vary their LPT base rates, including the factors that they must consider and the type of public consultation that they should undertake as part of that process.
