Factual position on Local Property Tax
None of the funds collected though the Local Property tax have gone towards our bailout debt nor will it be handed to bank bondholders. Any statement to the contrary is inaccurate.
From the 1st of January 2014 the Minister for Finance will pay the Local Property Tax into the Local Government Fund and will be used to fund local services – this provision was included in the Local Property Tax Act first published on the 14th of December and debated in the Oireachtas in December 2012.
The Government has also announced its intention that 80% of the local property tax will be retained in the local authority area it is raised to fund local services in the area.
In 2013, the allocation to the Local Government Fund was decided at the start of the year and there is no shortfall in the Local Government Fund.
This was a sensible transitional measure, which took account of the fact that the LPT was introduced from 1 July 2013 and Local Authorities needed certainty about their funding position from 1 January 2013.