€100 Household Charge to Fund Local Services

The Government is to introduce a Household Charge of €100 to fund vital local services. The Household Charges are expected to raise in the region of €160 million, which will be used to directly support the continued delivery of services by local authorities.

“In line with the EU/IMF agreement, the Government has approved the introduction of a Household Charge in 2012. A full property tax, requiring a property valuation system, will take time to implement, so I am introducing an interim charge of €100 which is to be applied to the majority of households in the country, payable from early 2012,” explains Minister for Environment, Community and Local Government Phil Hogan TD. “If we want to continue to have the level of local services we expect, such as fire and emergency services, well maintained streets, public parks, waste services, libraries, open spaces and leisure facilities, we have to be willing to contribute towards paying for them.”

The Memorandum of Understanding with the EU and IMF commits Ireland to the introduction of a property tax for 2012 and to an increase in the property tax for 2013. However, the introduction of the Household Charge is an interim measure and proposals for a full property tax will be considered by the Government in due course.

The charge is another step in reforming the way local authorities are funded and follows the introduction of the charge on non-principal private residences (NPPR) in 2009.

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