Dáil Éireann Debate, Wednesday - 13 July 2022
140. Deputy Ged Nash asked the Minister for Finance the estimated additional yield to the Exchequer from applying a higher rate of local property tax of 0.25% or 0.2875% to properties valued over €750,001, from increasing the higher rate of the tax to 0.3% on the balance of properties valued over €1.05 million and .4% per cent on the balance of properties valued over €1.75 million in tabular form; and if he will make a statement on the matter. [38643/22]
Amharc ar fhreagra141. Deputy Ged Nash asked the Minister for Finance the estimated additional yield to the Exchequer from applying a higher rate of local property tax of 0.25 % or 0.2875 % on the balance of properties valued over €750,001 and €1 million, respectively in tabular form; and if he will make a statement on the matter. [38644/22]
Amharc ar fhreagraI propose to take Questions Nos. 140 and 141 together.
I am advised by Revenue that the valuation provided by property owners in the Local Property Tax return is the LPT band and not the exact valuation of the property; for example, properties valued by their owners at €750,001 fall into the valuation band €700,001 - €787,500. Therefore, it is not possible to provide an accurate estimate of the yield of the possible change outlined by the Deputy for properties valued over €750,001. However, based on assumptions, an additional yield of approximately €21 million has been tentatively estimated for the proposed changes of applying a higher rate of LPT of 0.25% to properties valued over €750,001, increasing the higher rate of the tax to 0.3% on the balance for properties valued over €1.05 million and applying a 0.4% rate on the further balance for properties valued over €1.75 million.
I am further advised by Revenue that, on a similar basis, an additional yield of €25 million has been tentatively estimated for applying a higher rate of LPT of 0.2875% to properties valued over €750,001, from increasing the higher rate of the tax to 0.3% on the balance for properties valued over €1.05 million and applying a 0.4% rate on the further balance for properties valued over €1.75 million.
In relation to Question 38644/22, it is assumed that the Deputy is referring to introducing an LPT rate of 0.25% on values over €750,001 and 0.2875% on values over €1.05 million, with the existing rate of 0.3% continuing to apply to values over €1.75 million. I am advised by Revenue that the estimated yield from such a change is in the region of €18.7 million.
The Deputy may also wish to note that the LPT does not comprise part of Exchequer receipts, and is paid to the Local Government Fund rather than the Exchequer.
