How can you fix something that’s already good?
Local Authority Finances.com has just been updated to include 2016 data. And now it’s packing LPT (Local Property Tax) data. That’s the Property Tax to you and me. What makes the Local Authority Finances site even more interesting this year is that we can now see where and how some of those taxes are spent…
Most people who visit the site spend their time looking at how councils spend their money. But check out the Council Income section and discover more about Equalisation, Grants & Subsidies:
But getting your head around Local Property Tax is not that easy – oh no! That is because…
- Each of the 31 local authorities raises revenue through Local Property Tax and the allocation of this revenue is impacted by rules set by the Department of the Environment.
- But you can’t just go to LPT for each council to see who raised what. Take Dublin City Council for instance…
Dublin City Council Local Property Tax 2016: Case Study
Dublin City Council is estimated by the Revenue Commissioners to raise €77.5 million in Local Property Tax (LPT) in 2016.
- 20% of this amount (€15.5 million) goes to the Equalisation Fund to top-up local authorities with lower LPT bases.
- Local authorities can vary the rate of LPT in their administrative area by 15% of the basic rate. Dublin City Council chose to apply the full 15% reduction (€11.6 million) in LPT for 2016.
In order to retain the same amount of discretionary LPT funding in 2016 as in 2015, the Government provided compensatory funding for local authorities with a shortfall.
- Compensatory funding was provided for ten local authorities totalling €2.1 million.
- Dublin City Council received €255,593 on account of its decision to reduce its LPT basic rate by 15%.
- The total LPT allocation for Dublin City Council post-variation and compensation is €50.7 million in 2016.
How Is This Spent?
The €50.7 million has to self-fund some services as directed by the Department of the Environment.
- €17.2m has to be directed towards capital expenditure (this figure does not appear in the budget of Local Authority Finances.com because it is a balance sheet item).
- €26.7m goes into self-funding housing and roads
- €6.8m is for discretionary purposes.
Did you ever think you’d come across such complex yet clear economics on the Brightspark site?
For now we are happy that it’s a job well done: the site has been updated for 2016. The people of Ireland have fresh open data at their fingerclicks. And you? You’ve found the right people to talk to if you need to convey complex data into a nice clever visual. Why not get in touch? We’re very approachable.
We’ll always get back to you within one business day.