80% of LPT will be retained locally to fund vital public services in 2015 and the remaining 20% will be re-distributed to provide top-up funding to certain local authority areas that have lower property tax bases due to the variance in property values across the State.
Given that local authorities vary significantly from one another in terms of size, population, public service demands, infrastructure and income sources, the Government has decided that no local authority will receive less income from LPT in 2015 than they received from the Local Government Fund in 2014.
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Similarly, the Government is also aware of the fact that people living in certain local authority areas, particularly our large cities, will pay proportionately more LPT due to the amount of property tax paid in these areas.
The Government has, therefore, decided that local authorities who stand to receive more income in 2015 from LPT than they received from the Local Government Fund in 2014 will be entitled to use a certain portion of that additional funding for their own discretionary purposes as part of their normal budgetary process.
Minister Alan Kelly, TD, Minister for the Environment, Community and Local Government, said: "These measures will provide certainty and balance to the finances of local Government and give Councillors a greater say in how their authorities are funded, ensuring 80% of LPT is spent locally. All local authorities will be funded to their 2014 levels."
(CD/JP)
