COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, February 10, 2014
QUESTION NO. 14
QUESTION: Councillor D. Looney
To ask the Manager what proportion of the Local Property Tax collected in SDCC has been allocated through the Local Government Fund or any other means to the Council this year; what is the status of the proposed distribution of the LPT for 2015; what is the status of the proposals to allow Councillors to vary the LPT in a particular local authority area; and to make a statement on the matter?
REPLY:
(a) What proportion of the Local Property Tax collected in SDCC has been allocated through the Local Government Fund or any other means to the Council this year;
The most recent available data from the Revenue Commissioners about the collection of Local Property Tax (LPT) is 6 November 2013 and the total collected for LPT in the South Dublin County Council administrative area was €13,500,000 at this date. This equates to €27,000,000 for a full year. The total declared for LPT in the South Dublin County Council administrative area at 6 November 2013 was €15,900,000 which equates to €31,800,000 for a full year. The Local Government allocation to South Dublin County Council for 2014 is €923,906 and this represents 2.9% of the LPT which was declared for 2014.
(b) What is the status of the proposed distribution of the LPT for 2015;
The following extract from circular fin 6/2013 relates to the proposed distribution of LPT in 2015:
'The Government has indicated an intention to move to 80% retention of all Local Property Tax receipts within the local authority area where the Tax is raised. The establishment of Irish Water presents local government with significant organisational and financial challenges in 2014. Service provision responsibilities will shift from the local authorities to Irish Water, infrastructure will be transferred, financing arrangements will alter and local authorities will operate on behalf of Irish Water under Service Level Agreements. In this context, it was decided as part of Budget 2014 to defer defining a certain proportion of the proceeds of the Local Property Tax to be retained in each local authority until 2015.'
(c) What is the status of the proposals to allow Councillors to vary the LPT in a particular local authority area;
The Finance (Local Property Tax) Act 2012 www.irishstatutebook.ie/2012/en/act/pub/0052/index.html was enacted on the 26th December 2012 and provides for an annual tax payable by owners of residential properties. The Minister for Finance committed in a financial statement on Budget Day 2013 (5/12/2012) that the national central rate (0.18% up to €1 million and 0.25% on excess value over €1 million) will not be increased for the lifetime of the Government Tax i.e. the property valuation date of 1 May 2013 will be used from 2013 to 2016. However while the national central rates of 0.18% and 0.25% will not change during the term of the current government, Sections 19/21 of the Finance (Local Property Tax) Act 2012 allows members of certain local authorities to pass a resolution to vary the local property tax rate by +/- 15% from 1 January 2015.
In accordance with Section 20 (6) of the 2012 Act the Minister may make regulations with respect to the setting of the local adjustment factor to include:
- specifying the matters to which an LA must have regard when setting the local adjustment factor,
- the public consultation process that must be followed by a local authority before a local adjustment factor is set,
- the nature and extent of consultations with other person,
- the persons who must be informed when a local adjustment factor is set
- any other procedural matters as deemed necessary by the Minister.
The Minister has not yet published these regulations.