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SOUTH DUBLIN COUNTY COUNCIL

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, July 14, 2014

HEADED ITEM NO. 3d)

HEADED ITEM: C. Services Department

STANDING COMMITTEES - ORGANISATION, PROCEDURE & FINANCE COMMITTEE 19th June 2014

d) Motion on Property Tax

The following item was presented to the Members at the June OP&F meeting:

"M1/0614/opf     LOCAL PROPERTY TAX

It was proposed by Councillor W. Lavelle, seconded by Councillor C. Brophy:

“That this Council resolves to reduce the rate of the Local Property Tax by 15% in 2015; and further requests the Chief Executive to prepare the council budget for 2015 on this basis”.

REPORT:

“Section 20, subsection 2 of the Finance (Local Property Tax) Act 2012 provides that "a local authority may pass a resolution that the basic rate should stand varied (either upwards or downwards) by a specified percentage in respect of relevant residential properties situated in the local authority's functional area" and "Where a local authority passes a resolution under subsection 2, the rate of local property tax, in respect of relevant residential properties situated in the local authority's functional area, shall be the basic rate, increased or decreased, as the case may be, by the local adjustment factor"

The local adjustment may increase or decrease the basic rate by a maximum of +/- 15%. In accordance with Section 21 the decision to implement a local adjustment factor must be advised to the Revenue Commissioners on or before the 30th September to allow for the application of the adjusted rate to property tax in 2015.

Statutory Instrument 589 of 2012 (FINANCE (LOCAL PROPERTY TAX) ACT 2012 (SPECIFIED DATE) ORDER 2012) provides that sections 19, 20 and 21 of the Finance (Local Property Tax) Act come into operation on 1 July 2014. A process to vary the basic rate of property tax can be initiated from this date. Section 20 also provides that the Minister for the Environment, Community and Local Government may make regulations, including in respect of the public consultation requirements, prior to the variation of the rate of the Tax. The Department of the Environment, Community and Local Government noted in circular Fin 05/2014 that it is the intention of the Minister to make such regulations in advance of the commencement of section 20 of the 2012 Act.

If this motion is agreed the Chief Executive will, following the commencement of section 20 of the 2012 Act and receipt of the related regulations, consult with and advise the members on the appropriate framework to progress a variation to the basic rate in accordance with the provisions of the Finance (Local Property Tax) Act 2012”.

At the outset of the discussion Councillor M. Murphy proposed and Councillor M. Devine seconded an amendment to this motion as follows:

“That this Council resolves to reduce the rate of the Local Property Tax by 15% in 2015 as a first step towards the abolition of the Property Tax altogether as it is a completely un-fair additional tax burden on working people and penalises people for owning a family home irrespective of their means.”

The Members agreed to a show of hands vote on the amended motion, the result of which was as follows:-

FOR:                       16 (Sixteen)

AGAINST:              17 (Seventeen)

The amended motion FELL.

The Members then AGREED that the original motion and the report would go to the July Council meeting as a headed item for discussion."  End of Report to OP&F.

This matter is now before the Members for their consideration.