349. Deputy Ruth Coppinger asked the Minister for Finance to consider an alternative system for local property tax for those estates that have not been taken in charge by a council, given issues that have arisen (details supplied); and if he will make a statement on the matter. [62972/25]

The Government decided upon the introduction of the Local Property Tax (LPT), that a liability to the tax should apply to all owners of residential properties with a limited number of exemptions and no deductions. Limiting the exemptions and deductions available allows the rate to be kept low for those liable persons who do not qualify for an exemption.

Local authorities put the proceeds of the LPT towards infrastructure and services in their areas, such as the maintenance and provision of public roads, footpaths, lighting, open spaces, surface water drainage and other public amenities. All property owners benefit from this expenditure in their locality, regardless of whether they are obliged to pay management fees or not.

There is no exemption from, or reduction in, LPT for those paying management or apartment fees under the Finance (Local Property Tax) Act 2012 as amended. When a person pays a management fee, they receive services such as bin collection, maintenance of common areas and a sinking fund for repairs. These are costs that property owners or occupiers who do not pay management fees must meet from their own means.

The 2019 LPT Inter-Departmental Review Group looked at this matter but did not recommend that persons paying management fees be afforded relief in respect of LPT. Moreover, the review did not consider that there was a case for deductibility of such management fees against LPT.

A requirement to pay a management fee or service charge to property management companies is not relevant in determining whether a property is subject to the LPT. Accordingly, whilst those who are liable for these payments may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees, nor is there provision to offset the amount paid on management fees against LPT. I have no plans to change this.