96. Deputy Edward Timmins asked the Minister for Finance if he will review the operation of property tax. [39675/25]

Sentiment score: 0.00

I welcome some aspects of the revised calculation of property tax and the calculation of the amount retained by counties. I recognise that the expected average increase of 5% is way below the inflation rate of 16.7% over the past four years. However, more needs to be done to make it a more equitable tax. In particular, some counties do not retain all of the tax collected in their county.

Sentiment score: 0.20

I thank the Minister. In my county, Wicklow, €3 million of the €23 million tax raised will not be kept locally next year. This is an improvement on the €5 million in 2025 but it needs to be eliminated. I do not suggest it be taken from the other counties which receive more than what is collected but that it ultimately comes from Exchequer funding. Two aspects of the system need to be changed. The first is the baseline figure, which is used to deprive local authorities of the tax raised in their counties. This is based on a complex formula with very low weighting given to population. Counties with half or less of the population of Wicklow with similar areas have similar baselines. This makes no sense and needs to be scrapped. Second is the local property tax surplus calculation. This percentage is set to ensure the balance is calculated to reduce the amount a council can retain. It is an arbitrary percentage with no basis. Both of these complex formulae need to be scrapped to allow councils to retain all their property tax.

Sentiment score: -0.01

The legislation states the property tax must be reset to the base rate every year. This means if a council has a rate above the base rate, for example, 6%, as it is in Wicklow, it has to restate every year the rate is increasing whereas in actual fact the rate is not increasing. Could the legislation be changed to eliminate the requirement to return to the base rate each year and have the actual tax as the starting point? A positive development is the use of the discretionary fund to the municipal district. This allows a greater say over spending locally. It is something I promoted when I was chairman of Wicklow County Council. Spending in Ireland is too centralised and there is much benefit in spending being done by people close to the issues, namely, local councillors and local officials. I ask that the amount of property tax allowed for the discretionary fund be increased.

Sentiment score: 0.26