Local authorities will in time be given powers to set their own property tax rates in order to generate funds to support provision of services in their areas, Minister for the Environment Phil Hogan has said.
According to The Irish Times, the development, announced by the Minister at the publication of a programme of local government reform, would give county councillors power to set the tax at a level that meets financial needs. This was the case under the domestic rates system that was abolished in 1977.
“Property tax will become more and more the source of income for local authority services to be funded,” said Mr Hogan.
“If they are raising the money locally for service provision, they will have a say in how they spend it. Each local authority can have a different level of property tax in due course. The timing of that is a matter for Government.”
The tax, expected to be levied at an initial rate of 0.25 per cent of the property value, is to be announced in the December 6th budget and is likely to come into force in the middle of next year. The details of the levy, which is to be collected by the Revenue Commissioners, are yet to be approved by Cabinet.
Read more in today’s Irish Times.