Councils to keep 80% of Local Property Tax

Westmeath County Council and Roscommon County Council will keep 80% of the Local Property Tax collected in the two counties, it has been confirmed.

From next year 80% of all Local Property Tax (LPT) receipts are to be retained within the local authority areas where the properties are based and that these receipts should be utilised by those authorities in their local budgets. This will assist in the funding of new services such as the establishment of Local Employment Offices and other labour activation measures that will help create jobs, Environment Minister Phil Hogan said yesterday.

The remaining 20% of the LPT collected nationally will go to the Local Government Fund, which will continue to provide funding to local authorities on a needs and resources basis. This decision will not impact on the financial allocations of councils from general purpose grants in 2014.

'The needs and resources model has always been a feature of the funding disbursed from the Local Government Fund and that will continue to be the case. It recognises the fact that some local authorities with low population densities will not raise enough funding through the LPT and other local charges such as commercial rates,' said the Minister.

He said the introduction of the Local Property Tax (LPT) brings a new dimension to local government funding.

'The introduction of the Local Property Tax will provide a more sustainable funding model for local government, will devolve greater responsibility for financial decisions to the local level, and will help renew the relationship between the citizen and his or her local authority,' added Minister Hogan.

'The relationship between local government and the community it serves will be strengthened by the LPT. It is recognised international best practice that local services administered by local authorities should be locally funded.'

From 2015 local authorities will be have the discretion to vary the LPT by up to or less than 15% and this will further strengthen the autonomy of local authorities.