Dáil Éireann Debate, Thursday - 28 June 2012
160 Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the number of households that still have to pay the household charges; the way in which and when the money raised will be allocated to local authorities [31331/12]
Amharc ar fhreagra166 Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the number of households that have paid the household charge; the number of these that are entitled to waivers; and the action he will take to meet the shortfall in the funding of local authorities. [31338/12]
Amharc ar fhreagraI propose to take Questions Nos. 160 and 166 together.
The Local Government (Household Charge) Act 2011 provides the legislative basis for the household charge. Under the Act, an owner of a residential property on the liability date of 1 January 2012 is liable to pay the €100 household charge, unless otherwise exempted or entitled to claim a waiver. The household charge is on a self-assessment basis and it is a matter for an owner of a residential property on the liability date to determine if he/she has a liability and, if so, to declare that liability and pay the household charge.
The Local Government Management Agency (LGMA) is administering the household charge system on a shared service/agency basis for all county and city councils. I understand from data provided by the LGMA that, as of 22 June 2012, a total number of 967,816 declarations have been made, equating to over €94.5 million. Some 17,607 households had claimed a waiver. It is estimated that some 1.6 million residential properties are liable for the household charge.
The Local Government (Household Charge) Act 2011 provides that income from the household charge is to be paid into the Local Government Fund. This funding is provided to local authorities in general-purpose grants, making it possible for me to equalise distribution and ensuring that those local authorities with lower populations than others do not suffer unduly as a result. General purpose grants are paid on a quarterly basis. General Purpose Grants contribute to meeting the difference between the cost to local authorities of providing a reasonable level of services and the income available to them from local sources and from specific grants. The two principal sources of revenue for the Local Government Fund are the proceeds of motor tax and the income from the Household Charge. General purpose grants from the Local Government Fund are designed to bring about equalisation, over time, so that each authority will have sufficient resources, either from central grants or from its local income base, to provide a reasonable level of day to day services to its customers. For the purposes of allocations, a range of factors is taken into account, including each local authority's expenditure on, and income from, its services, and the overall amount of funding available for distribution.
The income generated from the household charge is kept under constant review. However, it is up to individual local authorities to address any potential funding shortfalls arising from non-compliance with the legislation and to pursue those who may have a liability and initiate court proceedings, where it is considered appropriate.
161 Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the assurances that he will give that the household charge is not passed on to tenants in private rented accommodation. [31332/12]
Amharc ar fhreagra168 Deputy Sandra McLellan asked the Minister for the Environment, Community and Local Government if a landlord is permitted to pass the household tax or future property tax on to the tenant by making it a condition of the tenancy agreement (details supplied); and if he will make a statement on the matter. [31350/12]
Amharc ar fhreagraI propose to take Questions Nos. 161 and 168 together.
The Local Government (Household Charge) Act 2011 and the Local Government (Household Charge) Regulations 2012 provide the legislation underpinning the household charge. Under the legislation, an owner of a residential property on the liability date of 1 January 2012 is liable to pay the household charge by 31 March 2012, unless otherwise exempted or entitled to claim a waiver. Section 1 of the Act provides a definition of "owner" for the purposes of the Act, which, in relation to a residential property, means—
(a) a person (other than a mortgagee not in possession) who—
(i) in the case of a residential property that is let under a lease or held under a tenancy for a term not exceeding 20 years, is entitled to receive the rent under that lease or tenancy whether in his or her own right or as trustee or agent for another person, or
(ii) in the case of a residential property that is not so let or so held, would, subject toparagraph (b), be so entitled if the residential property were so let or so held, whether in that person’s own right or as trustee or agent for another person,
or
(b) where the property is let under a lease or held under a tenancy for a term exceeding 20 years, the person (other than a mortgagee not in possession) who is the lessee under that lease or tenant under that tenancy.
A tenant holding a lease of less than 20 years' duration, whether in public or in private rented accommodation, is not an owner of the property in which he or she is living and is therefore not liable in respect of that property. The charge is assessed on the basis of ownership of property, not on individuals personally. The legislation governing tenancies generally is a matter for my colleague, the Minister for Justice and Equality.
