City LPT rate to remain at 2022 level

LOCAL property tax (LPT) in Cork City is to remain at the same level as 2022 for the next two years, following a vote by the city council.

At a meeting this evening, councillors agreed to leave the LPT at the current rate - 9% above the basic rate.

Ahead of the meeting, councillors were issued with a report by Cork City Council chief executive Ann Doherty, in which she recommended councillors should increase the rate to 15% for a period of two years.

“This would ensure that the public would enjoy enhanced services in the city for 2023 and 2024, which will allow the city to continue to prosper in these challenging times,” she said.

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 local adjustment factor (LAF).

Councillors can decide to change the rate upwards or downwards by 15%. Following changes to the regulations, councillors had, for the first time, the option to vary the rate for a two-year period.

Fianna Fáil councillor Seán Martin proposed that the basic rate should be increased by 9%, as was the case for the 2022 rates, and that this should be applied for a two-year period. This proposal was seconded by Fine Gael councillor Des Cahill.

Labour Party councillor John Maher said he would also support the 9% variation to “maintain local area budgets”, a sentiment echoed by Fianna Fáil councillor John Sheehan.

“We’re using this money for the benefit of the city… all of us as councillors have had reps for traffic calming measures in our area.. and this funding funds those measures and many other measures that enhances the community in which we live,” Mr Sheehan said.

Independent councillor Mick Finn suggested councillors should consider a smaller increase.

“The financial landscape has changed significantly from last year when we voted to adjust it to 9%,” he said.

“I think there’s merit in looking at perhaps a smaller rate, balanced with the view of the need for funds for local council and I think somewhere around 5% would send out a better signal,” he continued.

Sinn Féin councillor Mick Nugent said the party could not support any increase to the basic rate of LPT.

Speaking at the meeting, Mr Nugent said "in an ideal world" the party would be looking for a decrease but that, taking on board "the financial situation of the council" the party proposed no change to the basic rate of LPT. 

The proposal to adjust the basic rate of LPT by 9% for a period of two years was passed with 19 votes in favour and seven against.