Dáil Éireann Debate, Tuesday - 12 July 2022
422. Deputy Joe Flaherty asked the Minister for Housing, Local Government and Heritage if he will provide assurances that County Longford and other affected local authorities will be appropriately compensated as a result of the new local property tax brackets (details supplied). [37601/22]
View answerLocal Property Tax (LPT) allocations for 2022 are based on information regarding the 2021 liability yield provided by the Revenue Commissioners last June. All other elements are also based on 2021 figures, including the LPT baselines, the 80:20 local retention model, the equalisation contribution and self-funding of housing and roads from surplus LPT. LPT allocations to local authorities for 2022 amount to €523.9m.
The Programme for Government 'Our Shared Future', commits to bringing forward LPT reforms including providing for all money collected locally to be retained within the county. The Government has signalled its intention that the move to 100% local retention of LPT will be introduced over the 2023 and 2024 budgetary cycles. It is expected that the LPT yield will change following revaluation last November and the distribution model will be reviewed when new yield per local authority is fully quantified; final figures are not yet available.
Given the need for timely information to be provided to local authorities for their budgetary process and the need for final LPT figures to inform that, I do not expect that baselines will be reviewed in advance of the 2023 local authority budget process. Each local authority situation is complex and it is important that sufficient time is taken to analyse and assess potential options in that respect. Preliminary census data will also form an important input to that deliberation. My Department will, however, be considering, in consultation with the Department of Public Expenditure and Reform, the potential for a move towards 100% retention for 2023. LPT allocations for 2023 have, therefore, yet to be decided.
