Government sources have now confirmed that a number of local authorities have contacted the Department of the Environment seeking clarity on the issue. Council officials have requested to know whether 80pc of the proceeds from the tax will be retained locally before any instruction is issued to councillors.
In correspondence from head of finance at Dublin City Council, Cathy Quinn, it is confirmed that the council does not yet know whether the money will be diverted to local services.
The correspondence, seen by the Irish Independent, states that clarity surrounding €80m of funding is being sought.
“Should the minister confirm the 80:20 apportionment of Local Property Tax receipts of 80pc held locally and 20pc held centrally for redistribution, then €64m would be retained by DCC with €16m being held centrally,” Ms Quinn said.
“Dublin City Council is awaiting clarity on whether other government grants (which broadly total in 2014 to €80m) would be affected by arrangements around the LPT.”
Source: The Irish Independent