Local property tax fairness
The Leader responds that property taxation is relatively progressive and supports public services, while acknowledging concerns about fairness and offering to invite the Environment Minister back for a further discussion.
Senator Darragh O'Brien referred to the Cabinet reshuffle projected to take place next week. Of course, we anticipate it, as well as the outcome of the Labour Party leadership election on Friday.
The Senator asked a question about the local property tax and the four Labour Party Deputies who had spoken on the matter. To be fair, they raised an important issue about the need to ensure Dublin taxpayers were not discriminated against, something with which everyone would agree. We need to ensure the tax is fair. I was somewhat surprised to hear the Senator express opposition to the tax because, of course, it was a tax to which Fianna Fáil had signed up.
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Let us be clear: taxation on property is more progressive than taxation on income or labour. According to the ESRI, it is six times more job-friendly than taxes on labour. The issue is to ensure it is levied in a fair and progressive way.
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It is not a local property tax.
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It will be used to pay for vital public services, including local enterprise and job support measures, fire services, road maintenance works, libraries and recreational amenities. As the Senator is aware, we had a long debate on the legislation when it passed through the House.
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I will certainly ask to have the Minister for the Environment, Community and Local Government in the House again, as it would be good to hear more on the issue. However, it is also worth noting the high level of compliance with the tax, a feature sometimes overlooked in debates on the matter. Revenue which is engaged in ongoing collection of the local property tax has already collected over €291 million this year. It has achieved a compliance rate of 94% for 2013 and 91% for 2014. That is most impressive and shows that, by and large, people have signed up to the tax.