BOTH Dublin City Council and Fingal County Council are still in the dark as to how or whether they will have to pay property tax on their social housing units.
Social housing is not exempt from the controversial charge, but it will be waivered for accommodation provided for the elderly and those with special needs or disabilities.
However, Northside People has learned that neither Fingal or Dublin City councils know how they will be affected by the new tax or if it will impact on their tenants.
It’s feared that Dublin City Council’s recently revealed e2.2 million budget surplus will be significantly depleted if the local authority has to pay the tax on its stock of social housing.
It’s also been suggested that the property tax could be handed down to social housing recipients through increased rents.
Dublin City Council has around 24,000 dwellings, but only some will be exempt from the property tax. And the council is still waiting for clarification as to which categories of housing will be exempt.
“The new property tax legislation has only recently been enacted and the council is awaiting guidance from the Department of Finance and the Department of Environment, Community and Local Government regarding the implication for local authorities,
? a city council spokesperson told Northside People.
Fingal County Council echoed this statement.
Local TD Dessie Ellis (SF) believes council housing should not be liable in any way for what he described as the
“unfair property tax
?.
“Council tenants are not in any position to pay higher rents,
? he stated.
“The vast majority are scraping to survive these very hard times.
“This tax is supposed to be about funding local services but in fact it will cost local authorities large sums and take up resources determining the value of around 125,000 properties across the state.
“The Government must accept this point and amend their bill accordingly. Otherwise the family home tax will be an even greater mess than envisaged.
?
Local councillor Mary Fitzpatrick (FF) fears Dublin City Council’s e2.2 million surplus funding, which she said was needed elsewhere, will be
“wiped-out
? by the property tax.
“The property tax is anti-Dublin,
? she stated.
“With the highest property prices in the country, Dublin homeowners will pay more than their fair share.
“Dublin City Council has more than 20,000 social housing units and the cost of the property tax on these homes could exceed e3million per year.
“Now, when people are being asked to pay a property tax for local services, councillors must clearly demonstrate how they decide to spend the people of Dublin’s money.
“The Fianna Fail group is seeking a special meeting of Dublin City Council to revise the city budget after the city manager reports on the expected impact of the property tax on the city’s finances.
?
Meanwhile, a spokesperson for the Department of Environment outlined how the Property Tax Bill stipulates that accommodation which will be exempt from the Property Tax include accommodation provided by a charity or a body established by statute (i.e. accommodation provided to persons who by reason of old age, physical or mental disability or other cause require special accommodation and support to enable them to live in the community).
“Residential accommodation other than special needs provided by local authorities and other social housing providers will be liable to the tax under the bill,
? the department spokesperson stated.
“On enactment of the legislation the Minister for the Environment, Community and Local Government, following consultation with the Minister for Finance, will inform social housing providers of the arrangements for the payment of local property tax on relevant residential properties under their ownership.
“The matter has been raised and discussed with the department through the County and City Managers’ Association’s finance committee.
?
The Department of Environment is engaging with the Department of Finance and the Revenue Commissioners on property tax implementation and legislation and it plans to meet with the other relevant bodies in the near future.