Dáil Éireann Debate, Thursday - 12 February 2015
233. Deputy Sean Fleming asked the Minister for the Environment, Community and Local Government if the local property tax is a hypothecated tax; if it will be used for local services, including the provision of water services; the mechanisms he has in place for the disbursement of this tax from the Revenue Commissioners to the local government fund and other areas; and if he will make a statement on the matter. [6380/15]
View answerSection 157 of the Finance (Local Property Tax) Act 2012, as amended, provides that, in each financial year commencing with 2014, the Minister for Finance shall pay from the Central Fund or the growing produce thereof into the Local Government Fund an amount equivalent to the Local Property Tax, including any interest paid thereon, paid into the Central Fund during that year.
Details of the proposed expenditure from the Local Government Fund are set out in the Revised Estimates Volume for Public Services 2015 as published by the Department of Public Expenditure and Reform.
In accordance with decisions taken by Government, Local Property Tax proceeds are used to fund programmes and services provided by local authorities. LPT is not used to fund the operational subvention to Irish Water.
I have advised all local authorities of their individual provisional LPT allocations, totalling €458.9m for 2015, which will be paid to them by my Department from the Local Government Fund over the course of 2015. Up to €153.4m is ring-fenced to fund local services in the Housing and Roads areas by 10 local authorities, as set out in the reply to Question No. 561 of 10 February 2015. It is a matter for the individual local authorities to decide how to spend the remaining €305.5m in the context of the annual budgetary process, having regard to both locally identified needs and available resources.
