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Ireland Ready To Levy Local Property Tax

by Jason Gorringe, Tax-News.com, London

08 September 2014


The Irish Government on September 4, 2014, finalized implementation of the new local property tax (LPT).

80 percent of LPT will be retained locally to fund vital public services in 2015. The remaining 20 percent will be re-distributed to provide top-up funding to certain local authority areas that have lower property tax bases due to the variance in property values across Ireland.

The Government said that, given that local authorities vary significantly from one another in terms of size, population, public service demands, infrastructure, and income sources, it has decided that no local authority will receive less income from LPT in 2015 than they received from the Local Government Fund in 2014.

Local authorities who stand to receive more income in 2015 from LPT than they received from the Local Government Fund in 2014 will be entitled to use a certain portion of that additional funding for their own discretionary purposes as part of their normal budgetary process.

Ireland's Minister for the Environment, Community, and Local Government, Alan Kelly, said: "These measures will provide certainty and balance to the finances of local Government and give councillors a greater say in how their authorities are funded, ensuring 80 percent of LPT is spent locally. All local authorities will be funded to their 2014 levels."

"We have also recognized the contribution made by other local authorities with property bases with greater values by providing additional discretionary income for them. This will allow local authorities where property tax levels are highest to implement a full 15 percent reduction of the LPT should the elected members vote for it, or alternatively to increase the level of public services that they are providing."

"The Local Property Tax is designed to become a stable and sustainable source of funding and will enable local authorities to be become more self-sufficient in terms of their funding. This will provide Government with more options in terms of other taxation and expenditure policies in our future budgets," he concluded.

TAGS: tax | Ireland | property tax | budget | services | Tax

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