Public asked if Local Property Tax rate should be varied in Dublin city

Dublin City Council has invited submissions from the public and interested parties on whether they think the Local Property Tax (LPT) should be varied in Dublin city.

Section 20 of the Finance (Local Property Tax) Act 2012 allows the Elected Members of Dublin City Council to vary the LPT rate by plus or minus 15 per cent. The council must ask the public for their views on this and take these views into account before making a decision.

Anyone who wishes to take part in the public consultation process can take the user-friendly online survey from Monday 31st July to 4.30pm on Wednesday 30th August at the following https://consultation.dublincity.ie/

Kathy Quinn, Head of Finance with Dublin City Council, says “Local Authorities can vary the LPT. Revenue from this tax supports local services such as parks, libraries and street cleaning that Dublin City Council provides. Any decision to vary this is very important so we are asking the public for their views. These views will inform whatever decision is taken.”

All submissions received will inform a Chief Executive’s report which Dublin City Council will present to the Elected Members on Tuesday 19th September 2017. Should the Elected Members decide to vary the rate, Dublin City Council must inform the Department of the Housing, Community, Planning and Local Government and the Office of The Revenue Commissioners by 30th September 2017. Any variation which may be made would apply from 1st January 2018.

https://consultation.dublincity.ie/

Ends
For further information contact:

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Some Key Questions

What is the basic rate of the LPT?

The basic rate of the LPT is 0.18%

What is the effective rate of the LPT for Dublin City Council?

The effective rate of the LPT in Dublin City Council is 0.153%.

Why is the Dublin City Council rate different?

Under Section 20 of the Finance (Local Property Tax) Act 2012 it is a reserved function of our elected members to vary the basic rate of the LPT by +/- 15%.  This adjustment is known as the local adjustment factor and it shall not exceed 15%.

As part of the budgetary process our elected members passed a resolution on the 22nd September 2016 to reduce the LPT in the Dublin City Council area by 15% for 2017. The effective rate for the LPT in Dublin City Council for 2017 is 0.153% on properties up to €1m.  For properties valued in excess of €1m, the first €1m is liable at 0.153% and the excess over €1m is liable at 0.2125%.

How much did the reduction in the LPT cost Dublin City Council in 2017?

The reduction in the LPT represents funding foregone for Dublin City Council in 2017 of €11.9m.

Why am I being asked to vary the LPT again?

Per Statutory Instrument 296 of 2014 the local authority may;

‘By resolution vary the basic rate and set a local adjustment factor that will apply for a period of one year from the next local property tax date’

This means that when our elected members passed a resolution in September 2016 to vary the rate, it was for the 2017 liability only. In order to vary the LPT liability for 2018, our elected members must pass a resolution in September 2017 and the Revenue Commissioners must be notified by the 30th of September 2017.
The rate, once again, can only be varied by +/- 15% of the basic rate.

What is the expected LPT funding for 2017?

The value of LPT funding for Dublin City Council in 2017 has been estimated by the Department of Housing, Planning, Community and Local Government (DHPC&LG) at €79.5m.  After the transfer to the national equalisation fund (€15.9m), our elected members passing the 15% reduction (€11.9m); the available funding is €51.7m.  The expected funding is calculated as follows, see

How will Dublin City Council use this money?

Dublin City Council was directed by Circular Fin 07/2016 to self fund the following grants in Y2017 i.e. the LPT will fund grants that were previously funded by Government.  In 2017 the LPT accounted for €4m of additional funding to Dublin City Council, the balance of LPT funding replaced previous Government grants.

Did Dublin City Council only receive €4m additional funding from the LPT in Y2017?

Yes.  The declared LPT funding for Dublin City Council is €79.5m and of this amount only €4m (or 5%) represents additional funding for the City (see Table 2 above).  It should be noted that this funding is not new funding; it represents the continuation of additional funding from the LPT in 2015 which supports current service provision.  In 2015 & 2016 the discretionary funding was €4.1m, in 2017 this had decreased to €4m. (Final sentence amended 14th July)

What is the national Equalisation Fund?

In September 2014 the government announced that 80% of all LPT receipts would be retained locally with the balance of 20% being redistributed towards the national equalisation fund.  This fund is to act as financial support to Councils whose receipts from the LPT in 2016 would be less than their historical Local Government Fund allocation in 2017 base figure. Twenty one Local Authorities are set to benefit from the equalisation fund in 2017.  The total value of this funding for 2017 is €140.3m.  Dublin City Council receives no funding from the Equalisation Fund.

Can the survey only be taken online?

There are a variety of ways to take the survey:

LPT Consultation,
C/O Finance Dept,
Dublin City Council,
Block 1 Floor 8,
Civic Offices,
Wood Quay,
Dublin 8            

  • Hard copies of this survey will be made available at DCC Public Libraries and the Customer Services Centre, Civic Offices, Wood Quay, Dublin 8 and local Area Offices. A pdf version of the online survey will also be available for download at https://consultation.dublincity.ie/
  • or by email request to lptconsultation@dublincity.ie
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