John Brady
Ceist:216. Deputy John Brady asked the Minister for Finance his plans to review the local property tax; and if he will make a statement on the matter. [17366/20]
Amharc ar fhreagraTuesday, 21 July 2020
Ceisteanna (216)
Freagraí scríofa
A review of the Local Property Tax was completed by my Department in conjunction with the Departments of the Taoiseach, Public Expenditure & Reform and Housing, Local Government and Heritage and the Revenue Commissioners and the report was published in April 2019 (available at https://www.gov.ie/en/publication/1e5c76-review-of-local-property-tax/). In accordance with its terms of reference, the review focused on the impact of house price movements on LPT liabilities under a series of scenarios involving different rate and tax band structures. The review also included an examination of the outstanding recommendations of the 2015 Thornhill review of the Local Property Tax. It included a consultation process to enable all interested parties and individuals to submit their views on the future of the LPT.
The Programme for Government "Our Shared Future" adopted by the Government on 27 June 2020 includes a commitment to bring forward legislation in relation to the Local Property Tax (LPT) on the basis of fairness and that most homeowners will face no increase in their LPT liability. In addition there is a commitment to bring new homes, which are currently exempt from the LPT, into the taxation system. Further, all LPT funds collected locally will be retained within the local authority concerned. This is to be done on the basis that those counties with a lower LPT base are adjusted via an annual national equalisation fund paid from the Exchequer.
My Department is examining options for the implementation of these commitments in conjunction with the Revenue Commissioners and relevant Departments. I hope to be able to bring proposals to Government soon.