RTÉ Brainstorm – Could a redesigned property tax improve local public services?
Whitaker Institute members Dr Gerard Turley and Stephen McNena have written a new piece for RTÉ Brainstorm. The article looks at if a redesigned property tax could improve local public services.
Could a redesigned property tax improve local public services?
“Given the highly political nature of fiscal equalisation, any new redistributive scheme will inevitably result in losers and winners.” Photo: Sam Boal/ RollingNews.ie
Opinion: a new model would provide for a local government funding model that is more objective, sustainable and equitable
By Gerard Turley and Stephen McNena, NUI Galway
On the first day of summer 2021, the government signalled changes to the Local Property Tax (LPT) in line with the Programme for Government. Those commitments were to ensure that most homeowners will face no increase; bring new homes which are currently exempt from the property tax into the taxation system and allow all income collected locally be retained within the administrative area.
Changes will involve a revaluation of residential properties, a change in the bands and the basic rate, and 100% retention of property tax receipts by local authorities with the shortfall made up by central government. Much of the attention will be on the new valuations and liabilities, but our focus is the plan by Government to directly compensate less well-off local authorities so that their residents are not disadvantaged in their access to local public services. Continue reading….