Dáil Éireann Debate, Tuesday - 19 October 2021
454. Deputy Cathal Crowe asked the Minister for Housing, Local Government and Heritage the actions his Department will take to ensure equalisation of local property tax for western seaboard and mid-west local authorities (details supplied). [50631/21]
Amharc ar fhreagraLocal retention of Local Property Tax (LPT) began in 2015 and since then the overall principles and allocation methodology have broadly remained the same. Currently, 80% of LPT is retained in the area it is collected, with the other 20% supporting equalisation for local authorities with LPT bases lower than their funding baseline.
The Programme for Government 'Our Shared Future', commits to bringing forward LPT reforms including providing for all money collected locally to be retained within the county. This will also 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, as is currently the case.
The Finance (Local Property Tax) (Amendment) Act 2021 gives effect to a package of measures in line with the commitments in the aforementioned Programme for Government to address the future of the LPT. The Government has signalled its intention that the move to 100% local retention of LPT will be introduced over the 2023 and 2024 budgetary cycles. Any changes to the allocation process may be considered in that context.
In the meantime, LPT allocations for 2022 will provisionally be based on updated information regarding the 2021 yield, on a no change basis i.e. the 80:20 model. All other elements will also be based on 2021 figures, including the LPT baselines, the equalisation contribution and self-funding of housing and roads from surplus LPT. It is recognised that the yield will change following the revaluation and the matter will be revisited at that point.
