‘Unfair and unjust’ LPT tax maintained at 15% reduction

By Aideen O’Flaherty

SOUTH Dublin County councillors approved a 15 per cent reduction in the Local Property Tax on Monday, with several councillors describing it as an “unfair and unjust” tax.

Local Property Tax is used to fund essential services provided by the council, such as roads maintenance, housing and tree management.

Local councillors can vary the basic rate of Local Property Tax within the council’s administrative area by a maximum of plus or minus 15 per cent.

This year, a total of €31,868,167 was collected in South Dublin County via the Local Property Tax.

South Dublin County Council received 80 per cent of the tax (€25,494,534) in 2021, while the remaining 20 per cent (€6,373,633) went into an equalisation fund for other local authorities.

At Monday’s monthly meeting of South Dublin County Council, motions were tabled for a 10 per cent reduction and a 15 per cent reduction in the tax. The motion for the 15 per cent reduction was ultimately carried.

The motion for a 15 per cent reduction was proposed by Fine Gael councillor Lynn McCrave, and seconded by her party colleague, Cllr David McManus.

The motion was carried with 28 votes in favour, six against and two abstentions, with many councillors expressing frustration over the tax and a reliance on it for local authority funding.

Cllr Francis Timmons (Ind) described the tax as “unfair and unjust [as it’s] not based on income”, while Cllr Cathal King (SF) said the Sinn Féin group supported the 15 per cent reduction as he viewed the tax as “unjust” and added “it’s incumbent on us to give a little bit of a break to those who need it”.

Supporting the 15 per cent reduction, Cllr Yvonne Collins (FF) said “if we don’t apply the 15 per cent reduction then, like it or not, our constituents will face a substantial increase in their Local Property Tax.”

Cllr Guss O’Connell (Ind), who voted in favour of the 15 per cent reduction, said that though the council is “ferociously underfunded”, he’d rather see a reform of the tax system so wealthier people pay more tax and there is “proper funding for local government”, instead of the Local Property Tax.

The motion for a 10 per cent reduction was proposed by An Rabharta Glas – Green Left councillor Liam Sinclair, and seconded by Green Party councillor Laura Donaghy.

Supporting the 10 per cent reduction, Cllr Paul Gogarty (Ind) said: “We’re constantly called on not to reduce it [by the council] because it causes problems in terms of footpath repairs, trees and bins.

“It’s our duty as elected representatives to take responsibility and sometimes make unpopular decisions.”

Speaking ahead of the vote on his motion, Cllr Sinclair said that there likely wouldn’t be a need for the tax if “central Government were paying attention” to the funding needs of local authorities.

He added: “It is tiring hearing people speak on behalf of mortgage holders but, speaking for myself as a 2007 mortgage holder, I don’t mind contributing to my community via this tax. But I agree it is a s**t tax.”

Ten councillors voted in favour of the 10 per cent reduction, while 26 voted against, causing the motion to fall.

Social Democrat councillor Carly Bailey initially tabled a motion for no adjustment to the Local Property Tax rate, seconded by Cllr Pamela Kearns (Lab), however she withdrew it after realising that a new band structure for the tax could lead to an increase.

“What I don’t want is for people to have an increase in their Local Property Tax,” she explained, and voted in favour of Cllr Sinclair’s motion for a 10 per cent reduction.

The next valuation date for houses for Local Property Tax purposes will take place next November, with the valuations being reviewed every four years thereafter.

In September 2020, South Dublin County councillors voted in favour of a 15 per cent reduction in Local Property Tax which was due to lapse on October 31, 2021 with the rate reverting back to the basic rate.

As a result of this week’s vote, a 15 per cent reduction on the basic rate will be retained after October 31 this year.