Skip to content

Readers like you keep news free for everyone.

More than 5,000 readers have already pitched in to keep free access to The Journal.

For the price of one cup of coffee each week you can help keep paywalls away.

Image: Sam Boal/Photocall Ireland

Ministers have a plan. A plan to make sure the Property Tax is distributed fairly...

Questions have been asked about the way the contentious tax is set up, and whether it means some councils could, effectively be ‘done out of’ other grants.
Sep 3rd 2014, 8:34 PM 12,809 25

THE CABINET DISCUSSED a report on the Local Property Tax this afternoon, as ministers met for their first full session in six weeks.

They were briefed by an inter-departmental working group set up to examine the issue of retention of a proportion of the levy by local authorities.

In theory, the contentious tax was meant to be divided in an 80:20 split — with the lions share going to the local authority, and the remainder going to a central fund for redistribution to less well off areas.

But some local authorities in areas receiving a greater amount of funding from the levy (Dublin City Council, for instance) have raised the issue of whether other grants they already receive will be cut by the Government.

Some councillors have raised concerns that any cut to such grants could hamper plans to cut the tax locally. (One of the principals of the LPT was that there would be a mechanism to allow local authorities to reduce or increase it by up to 15 per cent.)

The intention of the plan discussed today was to ensure no local authority will be in a worse financial situation than they were last year, a Government spokesperson said.

Making a difference

A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article.

Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

For the price of one cup of coffee each week you can make sure we can keep reliable, meaningful news open to everyone regardless of their ability to pay.

In its list of priorities published in July the coalition committed that local authorities WILL retain 80 per cent of the proceeds from the local property tax from 2015, and that they will have the option to vary the rate within that 15 per cent margin.

Environment Minister Alan Kelly is expected to set out the plan put forward by the inter-departmental group in the next few days.

Read: Revenue want homeowners to justify property tax valuation if house value has increased

Send a tip to the author

Daragh Brophy

COMMENTS (25)

    Back to top