Designing a Property Tax:
Coupling local expenditure to a property tax
By: Karl Deeter (Irish Mortgage Brokers) &
Patrick King (Dublin Chamber of Commerce)
The views expressed in this paper & presentation are those of the authors and do not necessarily represent the views of,
and should not be attributed to, either of their respective organisations.
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Proposal - Property Tax Based on Site
Size & Local Authority Costs
• Tax Base =
– Residential Zoned Land for
Local Authority
• Rate =
– General Local Authority minus
Rates divided by the Tax Base
House 1
House 2
312.5 sq m
(5/16)
250 sq m
(1/4)
• Benefits
House 3
– Pay for local services
• Replacing LGF
– Simple to determine tax base
– Simple to implement
• Administrative
• Compliance
– Applies to all but designed to be
the least unfair
DRAFT DOCUMENT –
NOT FOR CIRCULATION
House 4
187.5 sq m
(3/16)
125 sq m
(1/8)
House 5
125 sq m
(1/8)
Result - provide examples and
demonstrate the ease of implementation
• Example Fingal (right)
• Tax liability in Fingal is €0.57 per m2
• 380 * €0.57 = € 216
• 190 * €0.57 = € 108
• 180 * €0.57 = € 102
•
•
Example Dun Laoghaire/Rathdown (right)
Tax liability in Dun Laoghaire/Rathdown is
€0.67 per m2
• 858m = €574
• 960m = €643
• 1886m = €1,263
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Designing a property tax
Value
Size
Property Value Square Footage
Site Value Tax
Site size
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Designing a property tax
National
• Capital Tax View
(Mieszkowski)
Local
• Benefit Tax View (Tiebout)
– Treats it as differential capital
tax
• Property tax collected from
local households,
centralised and then
redistributed as necessary
to local authorities for
services
– Model of efficiency in
provision of local services
• Property tax collected from
local households goes
directly to their local
authority for services
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Ireland Property Tax &Local Government
• “The need for local taxation arises if it is decided to operate a
system of local government with real discretionary powers, as
distinct from a system of local administration of centrally
determined and funded services.” - Commission on Taxation (1985)
• “local authorities should be self-financing in the longer term and
that Exchequer support should be replaced with increased revenue
generation from local sources” – Report of the Special Group on
Public Service Numbers and Expenditure Programmes
• “The funding system is characterised as ‘vertically imbalanced’, with
high levels of local expenditures being funded from general
taxation.” – Indecon Report
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Total Local Government Expenditure
• Report of the Special Group on Public
Service Numbers and Expenditure
Programmes
• Local Government Efficiency Review
Group
• Local Authority lead change
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Cost of Services by Division
Summary of Current Expenditure by Division 2011
Division
Service Division A
Service Division B
Service Division C
Service Division D
Service Division E
Service Division F
Service Division G
Service Division H
Total
- Housing and Building
- Road Transportation & Safety
- Water Services
- Development Management
- Environmental Services
- Recreation and Amenity
- Agriculture, Education, Health & Welfare
- Miscellaneous Services
Expenditure
€ 773,346,302
€ 878,458,415
€ 709,783,317
€ 282,941,196
€ 748,794,113
€ 383,809,974
€ 426,534,194
€ 344,271,263
€ 4,547,938,774
Income
€ 683,743,890
€ 540,868,677
€ 261,604,657
€
59,322,559
€ 230,083,242
€
58,799,484
€ 395,258,874
€ 145,233,552
€ 2,374,914,935
• Deficit in direct income from service:
– €2.17 billion
• Divisional deficit paid through general funding
of LGF & commercial rates
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Local Authority Variations
Local Authority
Clare
Cork City
Dublin City
Mayo
Meath
Monaghan
Offaly
South Tipp.
Wicklow
Staffing Level End2009 (Whole Time
Equivalents)
Staffing Level End2011 (Whole Time
Equivalents)
828
1420
6480
1178
703
434
478
654
827
Source: CCMA analysis
DRAFT DOCUMENT - NOT FOR
CIRCULATION
786
1336
6072
1062
641
405
399
632
747
Staff per 1,000 Staff per 1,000 Change (%)
homes End
homes End
2009
2011
15.0
25.4
26.8
18.0
10.1
17.4
15.6
17.1
15.2
14.1
23.9
25.1
16.1
9.1
16.1
12.9
16.5
13.7
-6%
-6%
-6%
-11%
-10%
-8%
-17%
-4%
-10%
Varying Services, Citizens, Policies
• Costs vs Service
– Dublin City: 11% live there; 21% work there
• WTE: other LAs (670); staff of agencies (225); and ‘Services /
Scale Unique to DCC’ (1857) => below national average
– Ireland’s low population density:
• Transmission network 4x European per capita
• 2nd largest road network per capita in the EU, after Sweden.
– Higher density locations see lower cost to serve on
core function with savings being used to supply other
non-core services.
• Local Government Efficiency Review cited the ability
of Donegal County Council to double the efficiency of
their staff compared to Mayo County Council.
DRAFT DOCUMENT - NOT FOR
CIRCULATION
DRAFT DOCUMENT - NOT FOR
CIRCULATION
DRAFT DOCUMENT - NOT FOR
CIRCULATION
DRAFT DOCUMENT - NOT FOR
CIRCULATION
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Who pays for Policies?
• Unique policies are democratic choices of
councils
Gross Expenditure Contribution by Provision of
other local
Goods &
authority
Services
Cork Consolidated
Dublin Consolidated
National Total
€
526,771,583
€
693,013,503
€ 4,723,028,068
Gross Expenditure
Government
(minus LA contributions Grants/
& services) per
Subsidies
household
€ 5,268,300 € 144,411,530 €
1,648.29 € 131,275,592
€ 21,470,800 € 166,016,798 €
1,761.88 €
93,955,600
€185,142,287 € 1,239,180,766 €
1,645.92 € 1,128,560,974
Local
Per Household
Government
level of Grants/
Fund (General Subsidies & LGF
Purpose Grant)
€ 62,795,676 €
848.30
€ 69,028,500 €
568.04
€ 705,392,841 €
915.07
• If local taxpayers are paying for these choices
does it matter to national taxpayers?
• Ultimately, local democratic government control
over budgets makes Cllrs accountable to
ratepayers and homeowners paying for extra
services
– Not other jurisdictions
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Local Expenditure Conclusions
• First Commission on Taxation
– Identify the national services from the local services
– Local services are optional in nature:
• “locality has wide discretion over what is done and the
manner in which it is done”
– Local services funded through locally raised revenue
• Indecon Report
– Cover full economic cost of national service delivery
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Context
• Residential Stamp
Duty introduced in
1996 to replace
Residential
Property Tax
• Residential Stamp
Duty:
Movement of Main Sources of Revenue
2008
2012
DOE AFS (million)
LA Budget (million)
€1,271
€1,237
Commercial Rates
€1,272
€956
Government Grants / Subsidies
€1,000
€645
General Purpose Grant
€
€79
Pension Related Deduction
€1,600
€1,379
Goods & Services
€5,143
€4,297
Total
Commercial Rates are adjusted for refunds / irrecoverable rates
Change
%
-3%
-25%
-35%
-14%
-16%
– 3.8% of peak level
Source: Minister for Finance, Written Answers, July 2012
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Local Government Fund
• Had savings from 2008 to 2012 not been
achieved property tax would be 50% higher
• Troika MoU commits to a property tax to fund
local government
• Exchequer contribution through motor tax to
LGF replaced by household charge
– Money raised locally is distributed nationally
DRAFT DOCUMENT - NOT FOR
CIRCULATION
DRAFT DOCUMENT - NOT FOR
CIRCULATION
How much you get? Who is paying?
Gross
Income from
Expenditure
local sources
per household (Charges,
other LAs,
Commercial
Rates) per
household
Carlow
Cavan
Clare
Cork City
Cork
Donegal
Dublin City
Dun Laoghaire/ Rathdown
Fingal
Galway City
Galway
Kerry
Kildare
Kilkenny
Laois
Leitrim
Limerick City
Limerick
Longford
Louth
Mayo
Meath
Monaghan
North Tipperary
Offaly
Roscommon
Sligo
South Dublin
South Tipperary
Waterford City
Waterford
Westmeath
Wexford
Wicklow
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
2,447
1,970
2,154
3,516
1,910
1,939
3,466
2,265
2,411
2,536
1,896
2,094
1,773
2,067
2,027
2,176
3,256
2,145
2,514
2,325
2,236
1,526
2,790
2,447
2,193
2,082
2,190
2,553
2,622
2,654
2,504
2,094
1,809
2,179
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
1,127
751
1,268
2,351
1,082
897
2,488
1,577
1,857
1,786
745
1,068
1,089
949
1,010
587
2,177
1,143
1,046
1,495
923
792
1,084
1,022
1,256
879
1,099
1,952
1,228
1,686
1,023
998
1,005
1,231
Central
Government
Income
(Grants, LGF,
Pension
deduction) per
household
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€
€DRAFT
€
1,321
1,219
885
1,166
801
1,042
921
671
552
750
1,151
1,027
682
1,118
998
1,588
1,079
1,002
1,462
830
1,313
733
1,707
1,418
934
1,203
1,079
601
1,394
968
1,481
1,096
DOCUMENT
- NOT
804
946
CIRCULATION
Compared to the past
(Indecon Report)
FOR
PROPERTY TAX
DRAFT DOCUMENT - NOT FOR
CIRCULATION
England Council Tax
Average Band D
Average
council tax for
council tax
area of billing
per dwelling
authority
in the area
£
£
1,439
1,196
ENGLAND
By area of authority:
London area
Metropolitan areas
Shire areas (b)
By region:
North East
North West
Yorkshire and the Humber
East Midlands
West Midlands
East of England
London
South East
South West
Sources: BR and CTB forms
(a) Figures include parish precepts.
(b) Figures include unitary authorities.
1,308
1,399
1,484
1,214
1,000
1,258
1,512
1,469
1,406
1,486
1,416
1,480
1,308
1,468
1,500
1,060
1,088
1,048
1,140
1,114
1,293
1,214
1,374
1,272
• Council Tax depends on
council and other public
bodies (eg the police):
– spend in your area
– get from other funding
• Average cost is double
or triple what it would
be in Ireland.
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Simple estimate of Avg House Bill
Residential Liability
Housing stock
per House in
2011 (Number) Housing Stock
Carlow
23,300 €
461.64
Cavan
33,837 €
476.52
Clare
55,826 €
244.33
Cork City
55,919 €
347.65
Cork County
172,858 €
250.82
Donegal
84,356 €
420.97
Dublin City
242,388 €
236.78
Dun Laoghaire/ Rathdown
86,088 €
329.89
Fingal
103,295 €
218.00
Galway City
33,826 €
196.60
Galway County
78,023 €
398.37
Kerry
75,206 €
333.99
Kildare
79,170 €
275.88
Kilkenny
39,299 €
454.09
Laois
32,818 €
461.42
Leitrim
18,237 €
693.60
Limerick City
26,849 €
310.59
Limerick County
55,784 €
348.05
Longford
18,889 €
688.28
Louth
51,344 €
340.58
Mayo
66,086 €
493.55
Meath
70,079 €
351.69
Monaghan
25,206 €
594.58
North Tipperary
30,944 €
567.77
Offaly
31,014 €
481.95
Roscommon
31,718 €
582.96
Sligo
33,223 €
540.45
South Dublin
97,541 €
185.67
South Tipperary
38,428 €
611.79
Waterford City
22,420 €
249.79
Waterford County
30,131 €
664.62
Westmeath
36,835 €
509.83
DOCUMENT - NOT
FOR
Wexford
68,551 €
295.17
CIRCULATION Wicklow
54,687 €
406.15
• Tax base is the housing
stock
• Each house is
proportioned an equal
share of the revenue
required by their local
authority
DRAFT
Cost per hectare
Carlow
Cavan
Clare
Cork City
Cork County
Donegal
Dublin City
Dun Laoghaire/ Rathdown
Fingal
Galway City
Galway County
Kerry
Kildare
Kilkenny
Laois
Leitrim
Limerick City
Limerick County
Longford
Louth
Mayo
Meath
Monaghan
North Tipperary
Offaly
Roscommon
Sligo
South Dublin
South Tipperary
Waterford City
Waterford County
Westmeath
Wexford
Wicklow
Local Authority
revenue from the Hectare of
Residential
Example Small Example Semi- Example Large Example Very
Local
residential
Liability (LGF) House 1 : 150 Detached 1:
Home 1: 1020 Large Home :
Government Fund zone land
per Hectare
sq m
285 sq m
sq m
4030 sq m
€
10,756,271
2000.35 € 5,377.20 €
80.66 €
153.63 €
548.47 € 2,167.01
€
16,124,118
2893.80 € 5,571.95 €
83.58 €
159.20 €
568.34 € 2,245.50
€
13,639,767
3006.08 € 4,537.40 €
68.06 €
129.64 €
462.81 € 1,828.57
€
19,440,000
2542.57 € 7,645.81 €
114.69 €
218.45 €
779.87 € 3,081.26
€
43,355,676
1365.66 € 31,747.11 €
476.21 €
907.06 € 3,238.20 € 12,794.08
€
35,511,198
2952.05 € 12,029.33 €
180.44 €
343.70 € 1,226.99 € 4,847.82
€
57,392,972
4278.81 € 13,413.31 €
201.20 €
383.24 € 1,368.16 € 5,405.57
€
28,400,000
4242.87 € 6,693.58 €
100.40 €
191.25 €
682.74 € 2,697.51
€
22,518,500
3967.66 € 5,675.52 €
85.13 €
162.16 €
578.90 € 2,287.23
€
6,650,187
1787.57 € 3,720.24 €
55.80 €
106.29 €
379.46 € 1,499.26
€
31,081,889
2665.77 € 11,659.64 €
174.89 €
333.13 € 1,189.28 € 4,698.83
€
25,117,827
3754.45 € 6,690.15 €
100.35 €
191.15 €
682.40 € 2,696.13
€
21,841,561
4061.24 € 5,378.06 €
80.67 €
153.66 €
548.56 € 2,167.36
€
17,845,181
1287.84 € 13,856.71 €
207.85 €
395.91 € 1,413.38 € 5,584.25
€
15,143,000
2747.00 € 5,512.56 €
82.69 €
157.50 €
562.28 € 2,221.56
€
12,649,174
759.90 € 16,645.89 €
249.69 €
475.60 € 1,697.88 € 6,708.30
€
8,338,920
1119.23 € 7,450.58 €
111.76 €
212.87 €
759.96 € 3,002.58
€
19,415,645
2248.06 € 8,636.61 €
129.55 €
246.76 €
880.93 € 3,480.56
€
13,000,932
1798.53 € 7,228.66 €
108.43 €
206.53 €
737.32 € 2,913.15
€
17,486,619
2596.74 € 6,734.06 €
101.01 €
192.40 €
686.87 € 2,713.83
€
32,616,795
2144.49 € 15,209.59 €
228.14 €
434.56 € 1,551.38 € 6,129.46
€
24,646,309
3922.23 € 6,283.75 €
94.26 €
179.54 €
640.94 € 2,532.35
€
14,987,104
1607.16 € 9,325.20 €
139.88 €
266.43 €
951.17 € 3,758.06
€
17,569,095
2092.65 € 8,395.61 €
125.93 €
239.87 €
856.35 € 3,383.43
€
14,947,337
2195.95 € 6,806.78 €
102.10 €
194.48 €
694.29 € 2,743.13
€
18,490,254
1958.21 € 9,442.44 €
141.64 €
269.78 €
963.13 € 3,805.30
€
17,955,497
1833.65 € 9,792.21 €
146.88 €
279.78 €
998.81 € 3,946.26
€
18,110,000
3262.37 € 5,551.18 €
83.27 €
158.61 €
566.22 € 2,237.13
€
23,509,802
2376.17 € 9,894.01 €
148.41 €
282.69 € 1,009.19 € 3,987.28
€
5,600,332
1136.52 € 4,927.59 €
73.91 €
140.79 €
502.61 € 1,985.82
€
20,025,798
1940.39 € 10,320.51 €
154.81 €
294.87 € 1,052.69 € 4,159.17
€
18,779,621
1786.23
€ 10,513.54- NOT
€ FOR
157.70 €
300.39 € 1,072.38 € 4,236.96
DRAFT DOCUMENT
€
20,234,262
2574.16 € 7,860.54 €
117.91 €
224.59 €
801.77 € 3,167.80
CIRCULATION
€
22,211,198
2833.57 € 7,838.58 €
117.58 €
223.96 €
799.54 € 3,158.95
Residential Examples
Foxrock, Co Dublin
• Tax liability per hectare of zoned
land in Dun Laoghaire/Rathdown is
€6,693.58 or €0.67 per m2.
– 858m = €574
– 960m = €643
– 1886m = €1,263
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Residential Examples
• Tax liability in Fingal is €5,675 per
hectare which equates to €0.57 per m2
• 380 * €0.57 = € 216
• 190 * €0.57 = € 108
• 180 * €0.57 = € 102
• Compare PRAI data against
the Google map lot sizes
variation is negligible
– Below €5 in annual charges
in most cases.
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Apartments
Example Medium
Density Apartment
(0.875 Hectares with
97 apartment)
Carlow
€
48.51
Cavan
€
50.26
Clare
€
40.93
Cork City
€
68.97
Cork County
€
286.38
Donegal
€
108.51
Dublin City
€
121.00
Dun Laoghaire/ Rathdown
€
60.38
Fingal
€
51.20
Galway City
€
33.56
Galway County
€
105.18
Kerry
€
60.35
Kildare
€
48.51
Kilkenny
€
125.00
Laois
€
49.73
Leitrim
€
150.16
Limerick City
€
67.21
Limerick County
€
77.91
Longford
€
65.21
Louth
€
60.75
Mayo
€
137.20
Meath
€
56.68
Monaghan
€
84.12
North Tipperary
€
75.73
Offaly
€
61.40
Roscommon
€
85.18
Sligo
€
88.33
South Dublin
€
50.08
South Tipperary
€
89.25
Waterford City
€
44.45
Waterford County
€
93.10
Westmeath
€
94.84
Wexford
€
70.91
Wicklow
€
70.71
Example High
Density Apartment
(0.073 ha with 35
Apartments)
€
11.22
€
11.62
€
9.46
€
15.95
€
66.22
€
25.09
€
27.98
€
13.96
€
11.84
€
7.76
€
24.32
€
13.95
€
11.22
€
28.90
€
11.50
€
34.72
€
15.54
€
18.01
€
15.08
€
14.05
€
31.72
€
13.11
€
19.45
€
17.51
€
14.20
€
19.69
€
20.42
€
11.58
€
20.64
€
10.28
€
21.53
€
DRAFT21.93
DOCUMENT - NOT
€
16.39
CIRCULATION
€
16.35
• Cost per unit very low
• Give responsibility to
management company
to collect
– Assistance from Revenue
for those non-compliant
FOR
Apartment Examples
• Block occupies footprint
of 3,712 metres
– 3,712 * €0.32 = €1,187
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Commercial/Residential Mixed
• Total zoned land of mixed
developed calculated
• Residential area as
proportion of that by use
– Commercial has paid its part
through rates
• Divide by household unit
size (including residential
common space)
DRAFT DOCUMENT - NOT
CIRCULATION
Example mixed use 5
floors w/ 3 residential
floors, 3 apts on a floor
(0.073 ha total)
Carlow
€
26.17
Cavan
€
27.12
Clare
€
22.08
Cork City
€
37.21
Cork County
€
154.50
Donegal
€
58.54
Dublin City
€
65.28
Dun Laoghaire/ Rathdown
€
32.58
Fingal
€
27.62
Galway City
€
18.11
Galway County
€
56.74
Kerry
€
32.56
Kildare
€
26.17
Kilkenny
€
67.44
Laois
€
26.83
Leitrim
€
81.01
Limerick City
€
36.26
Limerick County
€
42.03
Longford
€
35.18
Louth
€
32.77
Mayo
€
74.02
Meath
€
30.58
Monaghan
€
45.38
North Tipperary
€
40.86
Offaly
€
33.13
Roscommon
€
45.95
Sligo
€
47.66
South Dublin
€
27.02
South Tipperary
€
48.15
Waterford City
€
23.98
Waterford County
€
50.23
Westmeath
€
51.17
FORWexford
€
38.25
Wicklow
€
38.15
Farm Houses
• 2 options
– Option 1 (default):
• Farm land as a base times percentage that would be for
an home (national est. 0.19% home to farm land)
• Cap at local authority average size residential property
– Option 2:
• Self assessment to measure residential foot print
(inclusive of all non-agriculture land) at rate equal to
other residential properties.
DRAFT DOCUMENT - NOT FOR
CIRCULATION
County
Local Authority
Agricultural Land statistics (source:
Agri Census 2010)
Option 1 Cap:
Example, Small
Example,
Option 2: Self
Option 1: Farm
Limited to
Farm's tax
Average size assessment (same
land to
average
liability (half
farm's tax
as residential
residential land
residential liability
avg size for
liability (avg
rate) residential
liability per ha per House in local
county)
size for county area per 100 sq
Farm table
Number of Number of Avg ha per
farms
hectares farm
authority
461.64
Carlow
1798
70414.7
39.16 €
10.22 €
476.52
Cavan
5279 139560.39
26.44 €
10.59 €
€
244.33
Clare
6551 213626.74
32.61 €
8.62
347.65
Cork City
€
14.53 €
Cork
14221 542217.18
38.13
250.82
Cork County
€
60.32 €
420.97
Donegal
9240 257936.29
27.92 €
22.86 €
236.78
Dublin City
€
25.49 €
329.89
Dun Laoghaire
€
12.72 €
Dublin
798 38109.84
47.76
218.00
Fingal
€
10.78 €
€
185.67
South Dublin
€
10.55
196.60
Galway City
€
7.07 €
Galway
13445 347274.63
25.83
398.37
Galway County
€
22.15 €
333.99
Kerry
8413 286436.44
34.05 €
12.71 €
275.88
Kildare
2568 113212.71
44.09 €
10.22 €
454.09
Kilkenny
3729 164247.71
44.05 €
26.33 €
461.42
Laois
3309 122275.31
36.95 €
10.47 €
€
693.60
Leitrim
3669 92129.97
25.11 €
31.63
310.59
Limerick City
€
14.16 €
Limerick
5981 206535.83
34.53
348.05
Limerick County
€
16.41 €
688.28
Longford
2604 72991.36
28.03 €
13.73 €
340.58
Louth
1679 61368.35
36.55 €
12.79 €
493.55
Mayo
12441 278938.37
22.42 €
28.90 €
€
351.69
Meath
4569 191941.25
42.01 €
11.94
594.58
Monaghan
4559 106049.49
23.26 €
17.72 €
567.77
North Tipperary
3797 150147.56
39.54 €
15.95 €
481.95
Offaly
3475 126692.45
36.46 €
12.93 €
582.96
Roscommon
6316 171125.89
27.09 €
17.94 €
540.45
Sligo
4396 115368.85
26.24 €
18.61 €
611.79
South Tipperary
3946 162464.25
41.17 €
18.80 €
€
249.79
Waterford City
€
9.36
Waterford
2764 125770.64
45.50
664.62
Waterford County
€
19.61 €
509.83
Westmeath
3459 128441.41
37.13 €
19.98 €
295.17
Wexford
4424 182110.03
41.16 €
14.94 €
406.15
Wicklow
2399 101971.69
42.51 €DOCUMENT
14.89 -€NOT FOR
DRAFT
CIRCULATION
metres
€
200.06
€
400.11
€
53.8
€
139.94
€
279.88
€
55.7
€
140.57
€
244.33
€
45.4
€
276.94
€
347.65
€
76.5
€
250.82
€
250.82
€
317.5
€
319.01
€
420.97
€
120.3
€
236.78
€
236.78
€
134.1
€
303.68
€
329.89
€
66.9
€
218.00
€
218.00
€
56.8
€
185.67
€
185.67
€
55.5
€
91.29
€
182.57
€
37.2
€
286.10
€
398.37
€
116.6
€
216.39
€
333.99
€
66.9
€
225.24
€
275.88
€
53.8
€
454.09
€
454.09
€
138.6
€
193.52
€
387.03
€
55.1
€
397.09
€
693.60
€
166.5
€
244.42
€
310.59
€
74.5
€
283.33
€
348.05
€
86.4
€
192.49
€
384.98
€
72.3
€
233.83
€
340.58
€
67.3
€
323.96
€
493.55
€
152.1
€
250.78
€
351.69
€
62.8
€
206.07
€
412.15
€
93.3
€
315.39
€
567.77
€
84.0
€
235.76
€
471.51
€
68.1
€
243.04
€
486.08
€
94.4
€
244.14
€
488.28
€
97.9
€
386.99
€
611.79
€
98.9
€
213.01
€
249.79
€
49.3
€
446.13
€
664.62
€
103.2
€
370.87
€
509.83
€
105.1
€
295.17
€
295.17
€
78.6
€
316.53
€
406.15
€
78.4
DISCUSSION
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Rent, Mortgage, Own
• Average weekly rent charges:
– Local authority housing €54 (12%)
– Private owner €172 (26%)
• Mortgage cost €192 (17%)
– Highest disposable income €1,194
• Own outright
– Disposable income €794 (2nd highest)
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Impact on Local Authorities
• Gains revenue raising capacity
– Greater accountability to local citizens
• Challenge of small LAs
– Criteria for local taxes, base capable of yielding
revenue to fund LA (CoT 1985)
– Population of ~100,000 per local authority
achieving minimum efficiency scale (LGERG)
Local Authority revenue from the Local
Government Fund minus €10m in
efficiency savings
Leitrim / Sligo
Residential Liability
per House in
Housing Stock
€20,604,671
DRAFT DOCUMENT - NOT FOR
CIRCULATION
€ 400.40
• “Democracy rests on the dissemination
throughout society of a sense of responsibility
and of the opportunities to exercise it.” – The
Barrington Report (1991)
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Tax Strategy Group
Taxation of Property
• Lowest assessment either area or value
• Advantages:
–
–
–
–
–
self-assessed, relatively easy to administer
easy for taxpayers to measure
size for urban dwellers and valuation for rural dwellers
graduated pricing lower likelihood of underestimation
collect valuable data
• Possible pitfalls:
– no known examples
– rate carefully determined to obtain the required yield need
to be acceptable rate for most taxpayers.
– problems of self-assessment options
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Yes, we can…
•
•
•
•
•
•
•
•
•
•
•
•
•
Is this easily understood compared to other options?
Can this be done?
Is it simple?
Can it be done rapidly?
Is it equitable and fair?
Can mass appraisals/invoicing occur quickly?
Is it pragmatic?
Does it solve the issue of funding local government?
Can it fund local government dynamically?
Is it inexpensive to implement?
Will people understand it?
Is the compliance cost low?
Is it easy for people to determine if their bill is correct?
DRAFT DOCUMENT - NOT FOR
CIRCULATION
THANK YOU
DRAFT DOCUMENT - NOT FOR
CIRCULATION
Own or Rent
DRAFT DOCUMENT - NOT FOR
CIRCULATION
• Housing expenditure:
– Urban €163 (20%)
– Rural €121 (16%)
– Mortgaged 22.5%
– Private renter 26.3%
– Decile: 1st €72 ( %) | 2nd €79 (%) | 3rd €92 (
Source: CSO (2012), Household Budget Survey 2009-2010.
DRAFT DOCUMENT - NOT FOR
CIRCULATION
DRAFT DOCUMENT - NOT FOR
CIRCULATION