Dáil Éireann Debate, Wednesday - 15 October 2014
16. Deputy Olivia Mitchell asked the Minister for Finance if the 15% reduction which local authorities are permitted to apply to property taxes collected in their area is a once-off event or, alternatively, if it is envisaged that the 15% reduction can be applied every year, should local authorities so wish; and if he will make a statement on the matter. [39335/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that section 20 of the Finance (Local Property Tax) Act 2012 (as amended) allows a local authority to increase or decrease the basic rate of local property tax (LPT) by up to 15% in respect of residential properties situated within their administrative area. The LPT legislation requires the local authority to specify the period for which the variation to the basic LPT rate will apply.
The Minister for the Environment, Community and Local government has made regulations entitled "Local Property Tax (Local Adjustment Factor) Regulations 2014 (S.I. No. 296/2014)". These regulations specify certain procedures that must be followed in relation to when and how a local authority can change the basic rate of local property tax and the period for which the new rate can apply. Regulation 8(3)(a) permits a local authority to set a new rate of local property tax that would apply for a period of one year from the next following LPT liability date.
While a local authority is restricted to a single year each time it passes the required resolution to change the basic rate of local property tax, it may, if it so wishes, pass a resolution each year to increase or decrease the basic rate within the permitted maximum of 15%.
