Dáil Éireann Debate, Wednesday - 20 September 2023
601. Deputy Violet-Anne Wynne asked the Minister for Housing, Local Government and Heritage if he will comment on the centralisation of local property tax returns with respect to County Clare; and if he will make a statement on the matter. [40659/23]
View answerMy Department recently confirmed provisional Local Property Tax (LPT) allocations to all local authorities for 2024. In line with the commitment in the Programme for Government – Our Shared Future; 100% of the estimated LPT yield is now retained locally within the local authority area where it is collected.
Under the current LPT allocation model, every local authority is entitled to receive a minimum amount of funding under the LPT allocation process, known as the baseline. A working group, which included representatives from the local government sector, was set up earlier this year to review and establish a new model to determine LPT baseline funding levels. The review identified that the baseline funding of some local authorities, including Clare County Council, needed adjustment according to the criteria recommended by the working group. In accordance with this baseline review, Clare County Council’s revised baseline allocation for 2024 is €10,179,318.
Equalisation is the process that ensures that all LPT allocations are funded up to the baseline. As a local authority where the expected 2024 yield of €9,738,737 (before any local variation) is less than the baseline, this allocation includes €440,581 equalisation funding in order to ensure that the allocation is at least matched to the baseline.
In addition, every local authority has the power to vary the basic rate of LPT by up to 15%. Clare County Council decided last September to increase its LPT rate by 15% for both 2023 and 2024. Accordingly, Clare County Council will retain an additional resultant estimated income of €1,460,810 for the authorities’ own use in 2024.
