€1m in withheld household charge tax to be repaid

Almost €1 million withheld from local authorities in penalties for non-collection of the household charge is to be reimbursed by Minister for the Environment Phil Hogan.

Mr Hogan had refused to pay out the full Local Government Fund allocation to local authorities who failed to collect at least 65 per cent of the charge introduced last year.

However, all city and county councils have now bridged the gap and a national compliance rate of 76 per cent was reached this week.

Donegal County Council was the last to limp over the line and has just reached a payment rate of almost 66 per cent.

The local authority, having had the biggest non-payment rate, is getting the largest rebate, with €309,458 now being paid out.

Six other local authorities are also receiving payments which had been withheld.

Largest amount
Cork County Council is getting the next largest amount. Having now collected 74 per cent of the charges due in its area, it has secured €167,478.

Offaly County Council has taken in almost 70 per cent and gets €121,648; Meath County Council has taken in almost 71 per cent and gets €108,425; South Dublin County Council has collected just under 72 per cent and gets €84,820; Laois County Council took in just over 70 per cent and gets a payment of €65,949; while Louth at almost 69 per cent is getting €45,652, which had been withheld.

The best compliance rate in the State was in the Dún Laoghaire-Rathdown County Council area. The home area of People Before Profit TD Richard Boyd Barrett, who led the campaign against paying the charge, this local authority has taken in almost 90 per cent of the payments due.

Higher charge
The figures show that almost a quarter of all liable households have yet to pay the charge, which was set at €100 last year but has now risen to €144 in penalties and interest for those yet to pay.

However, from July the liability for those who haven’t paid up rises to €200 and the charge is added to the new local property tax, collected not by county councils but by the Revenue Commissioners.

Mr Hogan has urged those who have still not paid, to do so before this transfer date.

“I would like to thank all those people who have paid the charge, and encourage anyone who has not yet done so, to pay the charge and avoid any unnecessary penalties, bearing in mind that any liability to the household charge that remains undischarged on July 1st, 2013, shall be treated as a charge of €200 to local property tax that is due and payable on that date.”