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Property Tax

Dáil Éireann Debate, Tuesday - 8 September 2020

Tuesday, 8 September 2020

Ceisteanna (405)

Fergus O'Dowd

Ceist:

405. Deputy Fergus O'Dowd asked the Minister for Housing, Local Government and Heritage if emergency funding will be made available, in addition to funds announced to date, in order to supplement local authority budgets in order to defer a possible increase to the local property tax whilst the Covid-19 pandemic is having such a detrimental impact on the economy and employment; and if he will make a statement on the matter. [21248/20]

Amharc ar fhreagra

Freagraí scríofa

The elected councils are responsible for all budgetary decisions of local authorities, including Local Property Tax (LPT) variation decisions, the Annual Rate on Valuation for commercial rates and charges associated with services provided. Adoption of the annual budget is a reserved function.

LPT variation decisions must be finalised by local authorities by 30 September in order to take effect for the 2021 liability year. There are certain factors that a local authority is legislatively bound to take into account when deciding whether or not to vary the LPT rate for a given year, including expected income and expenditure, accumulated assets and liabilities and the impact of any variation on their local area. The decision is not one that can be taken without considering its implications, as it has a direct impact on the level of funding available and on the ability of the local authority to deliver services.

My Department continues to assist local authorities with the financial challenges they are experiencing since the outbreak of the Covid-19 pandemic, including cash flow support by bringing forward payments where possible, in order to ensure that the services that local authorities deliver can be maintained.

It is recognised that additional costs are being incurred by local authorities in relation to Covid-19. Local authorities have been advised to capture all related costs in their financial systems to aid financial analysis of the impact of Covid-19 on the local government sector, which will inform decisions on funding. In the meantime, my Department continues to keep local authority income, expenditure and cash flow under review and will continue to work with all local authorities, both collectively and individually, on issues arising.

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