Parliamentary Question addressed to the Minister for the Environment, Community and Local Government

To ask the Minister for the Environment, Community and Local Government if it is envisaged that the proceeds of the local property tax in a full year will be sufficient to replace the current Local Government Fund; and if he will make a statement on the matter.

Reply (Minister for the Environment, Community and Local Government (Mr. P. Hogan) )

Under the Finance (Local Property Tax) Act 2012, commencing in 2014 the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year; this revenue will be allocated to local authorities from the Fund. In 2013 Local Property Tax revenue will accrue to the Exchequer.

The Government has indicated an intention to move, from 2014, to 80% retention of all Local Property Tax receipts within the local authority area where the Tax is raised. The remaining 20% of the Tax collected nationally will be re-distributed on an equalised basis to local authorities within the context of the annual allocations of General Purpose Grants.

The 2013 Local Government Fund General Purpose Grant allocations to local authorities total €640.9m. Pending a fuller understanding of the anticipated yield of the Local Property Tax, on a per local authority basis, and discussions to take place in the context of Budget 2014, it would be premature to comment definitively on anticipated Local Property Tax yields or on details of the broader mix of revenue streams which local authorities will receive in 2014.