Wednesday, March 13 16:07:25
Reports today said that 80pc of property tax revenue will go directly to the local authority in which it was collected.
This is a significant step in linking the local tax to local spending, according to Dublin Chamber of Commerce.
Since the announcement of plans for a local property tax, Dublin Chamber has consistently called for the revenue generated from the tax in a local authority to be used to provide for local services.
Gina Quin, Dublin Chamber Chief Executive said, "Our argument has always been very straightforward, the property tax must be used to fund local services in the local authority area it is raised - and not go through a national fund. This isn't a rural-vs-urban issue, all people want to see is the money they are paying in a local tax going to pay for their local services. This would improve local government accountability, transparency and efficiency. If your local authority is spending your money - you will have a direct interest in what they are spending it on and if they are getting good value for money."
The Inter-Departmental Group on Property Tax had recommended that only 65pc of funds collected in local authorities should remain there, however, it has emerged following yesterday's cabinet meeting that an agreement has been made to retain 80pc of the property tax in the local authority it is raised. The remaining 20pc will go towards a centralised fund to be used by local authorities when required.
Ms Quin concluded, "Business has always had an interest in good, efficient local government as they pay directly for it from commercial rates. Homeowners should see this move as a democratic gain as their tax will now be linked to local services and they can ask their councillors 'how are you spending my money?'."