Dáil Éireann Debate, Tuesday - 17 February 2015
496. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the criteria that are used to decide the level of contribution from the Equalisation Fund that each local authority receives in a given year; and if he will make a statement on the matter. [6745/15]
Amharc ar fhreagraLocal Property Tax was introduced to provide an alternative, stable and sustainable funding base for the local authority sector, providing greater levels of connection between local revenue raising and associated expenditure decisions. Given that local authorities vary significantly from one another in terms of size, population, public service demands, infrastructure and income sources, the Government has decided that no local authority will receive less income from LPT in 2015 than they received for General Purpose Grants (GPGs) from the Local Government Fund in 2014.
In accordance with the decisions taken by Government, my Department has advised local authorities of their provisional Local Property Tax allocations from the Local Government Fund for 2015. 80% of LPT will be retained locally to fund vital public services in 2015. The remaining 20% will be re-distributed to provide top-up funding to certain local authorities that have lower property tax bases due to the variance in property values across the State and to ensure that their 2015 funding levels are at least equalised at 2014 General Purpose Grant levels. Matters relating to equalisation levels and methods for future years will be reviewed as necessary and appropriate.
