The contentious issue of property tax is being discussed at the first Cabinet meeting since the summer recess today.
An inter-departmental working group’s report on the retention of 80 per cent of the tax within the local authority area where the tax is raised will be presented to ministers.
While the detail of the report has yet to emerge, it is understood it will indicate no local authority will be worse off than it was last year, with a combination of Government grants and the revenue they raise.
In September last year, then minister for the environment Phil Hogan said the remaining 20 per cent of the tax collected nationally was due to be re-distributed on an equalised basis to local authorities within the context of the annual allocations of general purpose grants.
The priority will be to support those local authorities with weaker funding bases, Mr Hogan said at the time.
Last July Taoiseach Enda Kenny denied that the Cabinet was split on the property tax, as claimed by Fianna Fáil leader Micheál Martin. At the time Mr Martin said media reports had said there was a significant split in the Cabinet on the issue, with Fine Gael wanting to charge local authorities more.
During the summer, some councils, including Dun Laoghaire Rathdown and Fingal voted to commit to a 15 per cent reduction in the Local Property Tax in their next budget.
In July Revenue reported a compliance rate with the Local Property Tax and Household Charge of up to 95 per cent to the end of June this year, amounting to a collection of €310 million for 2013 and 2013.
