The introduction of the Local Property Tax will provide a stable funding base for the local authority sector, incorporating appropriate elements of local authority responsibility. It will strongly reinforce local democratic decision-making and will encourage greater efficiency by local authorities on behalf of their electorates. Secondly, it will deliver significant structural reform through broadening the base for taxation in a manner that does not directly impact on employment and thereby contribute significantly to meeting the immediate financial requirement of the EU/IMF programme. According to Budget estimates the Local Property Tax is expected to generate an overall yield of €250 million in 2013 and €500 million in 2014.
Income from the LPT will accrue to the local authorities to fund local services. It will be the responsibility of each individual local authority to manage its budget appropriately, taking into account the income and liabilities that may arise from the LPT. There are no plans to include the cost of bin collections under the Local Property Tax charge.