Dáil Éireann Debate, Thursday - 30 September 2021
180. Deputy Catherine Murphy asked the Minister for Housing, Local Government and Heritage the way in which he will ensure that baselines in respect of local property tax will be equitable in the context of existing and forecasted population growth; and the way in which a local authority may retain increased revenue over redirecting it to an equalisation fund. [47444/21]
View answerThe Government remains committed to ensuring that the local government sector retains a sustainable and stable source of funding from Local Property Tax (LPT), distributed to local authorities via the Local Government Fund, to support the delivery of local authority services.
My Department recently confirmed provisional LPT allocations to local authorities for 2022 amounting to €528m, notwithstanding local variation decisions. LPT allocations for 2022 will provisionally be based on updated information regarding the 2021 yield, on a no change basis i.e. the 80:20 model. All other elements are also be based on 2021 figures, including the LPT baselines, the equalisation contribution and self-funding of housing and roads from surplus LPT. The €34.3m shortfall between the 20% contribution from all local authorities and the total amount required for equalisation is met by the Exchequer. The funding for all local authorities will be kept under review as part of the normal Estimates process and in the context of the upcoming LPT revaluation process.
The Programme for Government 'Our Shared Future', commits to bringing forward LPT reforms. These reforms involve bringing new homes, which are currently exempt from LPT, into the taxation system as well as providing for all money collected locally to be retained within the county.
When detailed information on the new LPT yield becomes available following the revaluation, my Department will review the allocation process.
