The Minister for the Environment, Community and Local Government, Mr Phil Hogan T.D., today (31st January 2012) announced that he has established a high level and focussed Inter-Departmental expert Group to consider the structures and modalities for an equitable valuation-based property tax that will replace the current €100 Household Charge. The Group is tasked with reporting back to the Minister by end-April 2012.
The Minister stressed the Government’s firm commitment to introduce a valuation-based property tax to replace the Household Charge at the earliest opportunity. The Minister said: ‘Ireland is one of the last countries in Europe to introduce property-based charges to fund local services. The tax base in Ireland needs to be broadened but the focus must move away from taxing people’s work to lessen the impact on growth and to support employment. The Minister continued: ‘The expert Group is to report to me by end-April 2012 on the design, scope and implementation of the property tax and I intend to bring proposals for an equitable valuation-based property tax to replace the Household Charge to Government as soon as possible thereafter.’
The Group will be independently chaired by Dr. Don Thornhill who has relevant expertise in this area. The Group will be comprised of senior officials from the Departments of Environment, Community and Local Government; Finance; Public Expenditure and Reform; Communications, Energy and Natural Resources, Social Protection and the Revenue Commissioners. The Group may also call on technical expertise from the Central Statistics Office, An Post/Ordnance Survey Ireland, Property Registration Authority, the Valuation Office, the Property Services Regulatory Authority and other individuals, organisations and agencies as it may deem to be of assistance in carrying out its work.
The Minister welcomed the fact that over 66,000 residential properties have registered for the Household Charge, equating to €6.6 million. ‘I would like to acknowledge and thank those people who have registered their properties and paid the Household Charge at this early stage. The large numbers of people paying the charge is a clear indication of compliance with the legislation and the acceptance that it is necessary to fund vital local services in our communities.’
The €100 will go towards paying for essential local services: public parks; libraries; open spaces and leisure amenities; planning and development; fire and emergency services; maintenance and cleaning of streets and street lighting.These services are integral to the quality of life in local communities.
The terms of reference for the expert Inter-Departmental Group are:
To consider the design of a property tax to be approved by Government to replace the Household Charge and that is equitable and is informed by previous work and international experience.
The residential property tax is to:
· Meet the immediate financial requirements of the EU/IMF programme;
· Provide a stable funding base for the local authority sector in the medium and longer terms incorporating an appropriate element of local authority responsibility subject to any national parameters;
· Ensure the maximum degree of fairness between and across both urban and rural areas
· Be collected centrally by the most cost efficient and effective means;
· Facilitate easy and/or phased payments by households;
· Be easily determined (e.g. on a self assessment basis), and having regard to the information currently available (or to be made available through registrations for the household charge) on residential property and/or house ownership details.
The Group is also to consider the appropriate arrangements for:
A robust audit function; and
Strong enforcement and penalty provisions for non-compliance.
The Group will be assisted principally by a secretariat in the Department of the Environment, Community and Local Government and should report to the Minister for the Environment, Community and Local Government by end-April 2012.