Property tax as a source of local government funding

Local governments around the world are generally funded by a combination of own-source revenues and grants/transfers from upper tier levels of government. Ireland is no different, with its local authorities funded by a mix of local taxes, fees and charges, and central government grants. The only local tax is property tax. All revenues from the ownership or use of residential and non-residential properties are assigned to Ireland’s local government units, namely the local councils. Unlike in many other countries where there is a single integrated property tax system, Ireland has two property tax regimes, namely a centuries-old commercial rates system and a 21^st-century designed Local Property Tax (LPT). Undertaken at the University of Galway and the University of Toronto, Canada, the research investigates property taxes in Ireland, based on international comparisons of property tax systems in other countries, including the UK, Canada, Australia, New Zealand, and some European countries, with a view to identifying international best practice and domestic policy lessons.

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