Anger over property tax move

MEMBERS of a Northside residents’ association are

“dismayed

? after hearing that their property tax money will not be going directly to local authorities in 2014.

The Department of the Environment said it has been

“necessary

? to defer defining a certain proportion of the property tax proceeds to be retained in each local authority until 2015.

Austin McCoy, chairperson of Lorcan Estate Residents’ Association, Santry, and a local community activist, told Northside People:

“Our members are dismayed and angered by this. When the property tax was first mooted, we had grave concerns that this would happen.

“It was difficult enough when we first heard that we would have to pay the property tax, but at least there was some consolation in the fact that the money raised was going to go directly back into the community.

“Now there seems to be no clear indication as to where the money is going to be allocated. There is quite a lot of uncertainty and our members are seething with anger.

“Our members are confused about the whole approach to taxation and what we need is clarity.

?

Mr McCoy, who attended the senior citizens’ post-budget protest at the Dail, said that 12 per cent of the population is over 65.

“They are hard-pressed having to meet all these demands such as the property tax and the water charges are still to come,

? he said.

“This is very disappointing news and now it looks like the money from the property tax will disappear down a black hole instead of being invested in our communities.

?

In May, Northside People reported how members of Lorcan Estate Residents’ Association targeted Taoiseach Enda Kenny, leaders of all the political parties, every minister in the Cabinet, local TDs, senators and the Dublin city manager with letters seeking answers as to where exactly their property tax money was going.

“We got no definitive answers to those letters,

? added Mr McCoy.

North inner city ward councillor Mary Fitzpatrick (FF) also slammed the move.

“In March 2013 Minister Hogan, on behalf of the Government, and in an effort to encourage people to pay Fine Gael’s punitive Local Property Tax, promised that local authorities would keep 80 per cent of all local property tax collected in their area,

? said Cllr Fitzpatrick.

“Most people are reasonable and don’t mind making a contribution towards services they benefit from.

“Most people, through prudent management of their household budgets, managed to pay their property tax on the basis that they were making a contribution to the provision of services in their local communities.

“The Government’s decision to break their promise to allow local authorities to keep and use 80 per cent of the local property tax in their areas is a real kick in the teeth to every homeowner who paid their tax last year and who will have to pay double next year.

?

Cllr Fitzpatrick added:

“The Minister’s statement that the funding for no local authority will be any worse off in 2014 than it was in 2013 just adds insult to injury.

?

A spokesman for the Department of the Environment said the local government funding model will change considerably in 2014.

“Under the Finance (Local Property Tax) Act 2012, commencing in 2014, the Minister for Finance will pay into the Local Government Fund an amount equivalent to the Local Property Tax paid into the Central Fund during that year,

? he told Northside People.

“This revenue will be allocated to local authorities from the fund.

“In addition, the establishment of Irish Water and its financial relationship with the local government sector will have a considerable impact on local authority financing.

“The Government has indicated an intention to move to 80 per cent retention of all local property tax receipts within the local authority area where the tax is raised.

?

The spokesman said the establishment of Irish Water presents local government with significant organisational and financial challenges in 2014.

“In this context it has been necessary to defer defining a certain proportion of the proceeds of the local property tax to be retained in each local authority until 2015,

? he stated.

“This approach allows maximum flexibility in allocating local property tax in 2014 with the priority to support those local authorities with weaker funding bases.

“The 2014 Local Government Fund General Purpose Grants will be announced in due course.

?