Cork county councillors vote on local property tax

Cork county councillors have voted to retain the local property tax (LPT) local adjustment factor (LAF) at the same rate applied last year for the next two years.

At a meeting today, councillors agreed to leave the LPT at a variation of 7.5 per cent.

The Finance (Local Property Tax) Act 2012 (as amended), makes specific provision that elected members of a local authority may pass a formal resolution to vary the basic rate of the LPT for their administrative area by a percentage known as the LAF.

Councillors can decide to change the rate upwards or downwards by 15 per cent.

While such a resolution may be made annually, the adjustments are not cumulative from year to year.

The Elected Members of Cork County Council have voted to retain the Local Property Tax Local Adjustment factor at the same rate applied last year, 7.5% for 2 years. pic.twitter.com/9vgCv7mUHI

— Cork County Council (@Corkcoco) September 26, 2022

In a report issued to councillors ahead of the meeting, the council executive recommended that councillors would increase the rate by 15 per cent.

“While there is a strong desire to retain the current level of services, it is clear this will not be possible for 2023.

“To minimise the reduction and negative impact on services and communities it is imperative our income is maximised... We strongly recommend Members agree to increasing basic rate variation and setting a Local Adjustment Factor of 15 per cent,” it stated.

The report outlined that the council’s current budget 2023 estimation “shows a significant funding gap of €16.8m” with a “potential funding need of €27.4m” given requests for reductions to proposed budget cuts and other budget requests.

Mayor of the County of Cork, Independent Cllr Danny Collins said he could not support any further increase to the LPT and recommended leaving the variation at 7.5 per cent.

Mr Collins also called for additional funding for the council from central Government and proposed that the council would write to secure a meeting with the Cork TDs in power.

Calls for additional funding for the local authority were echoed by numerous councillors at today's meeting, including Independent Cllr Declan Hurley.

Mr Hurley said he would support the proposal to retain the LAF at the same rate applied last year and suggested that the rate be fixed for 2023 and 2024 at 7.5 per cent.

Fianna Fáil Cllr Seamus McGrath said “under no circumstances” could the party “increase the burden on households in the coming year” by upping the rate beyond 7.5 per cent.

“That is not something we’re prepared to do. To do so would put us totally out of touch with reality and the suffering and the pain that people are experiencing out there,” he said.

“Of course, national Government will have to step up to the plate in terms of local authority funding. To be fair, they did do so during the Covid crisis and I have no doubt they will step up to the plate as well during the energy and cost of living crisis and we will await to see what comes tomorrow in that respect,” he continued.

Sinn Féin Cllr Danielle Twomey said families are "at the absolute pin of their collars" and said she also could not support an increase. 

At the meeting today it was clarified that councillors may decide to amend the rate of LPT next year but that two-thirds of the councillors would need to be in agreement.