Up to 80% of property tax will be used locally

Up to 80% of property tax collected from households within specific local authorities will remain in a locality and not be used for facilities elsewhere, the Government has agreed.

The move means urban families and households who this week received demands for the new levy will be happy that the large amounts they pay will be ringfenced for local services.

The Government had said that only 65% of funds collected in localities would remain there, in line with an expert report on the proposed tax, and that remaining amounts go back into the central fund and be spent in other areas.