Homeowners facing tax hike; Cork city councillors vote to increase local property tax for two-year period 

Homeowners across the city are facing a hike in their local property tax (LPT) for a two-year period.

At a meeting of council this evening councillors voted to set the local variation in LPT at 12%.

The decision increased the local variation from 9% and includes agreement to fix this at a minimum of 12% for two years, with the possibility to review the decision again in 12 months time.

Proposing the increase for a two-year period Fianna Fáil councillor Seán Martin said it would provide more “certainty” to the council in terms of its budget and could be used to increase areas such as ward funds for footpath repairs or other works.

Labour Party councillor John Maher said national government should be providing additional funding to local authorities but added: 

“The people that we represent need to know that we’re playing the hand we’re dealt for their benefit.”

Mr Maher said it was worth bearing in mind that with LPT “those with the most expensive houses pay more and those as it goes down the line pays less”.

Sinn Féin councillor Joe Lynch was among those to voice opposition to an increase. 

"Workers and families in this city have experienced the worst cost of living crisis in generations over recent years. In the midst of this, increasing the local property tax rate is entirely unjustified,” he said.

Mr Lynch said while he accepted that there are “infinite demands” on council services in the face of “finite resources”, national government should provide more funding to local authorities.

Ahead of the meeting, a report from the council executive said the preparation of the 2025 budget is proving to be “extremely challenging” due to factors including an increase in demand of services being sought, with councillors being recommended to vary the basic rate of LPT upwards by 15%.

Following changes to the regulations, councillors in 2022 had, for the first time, the option to vary the rate for a period of more than one year. That year, councillors decided to adjust the basic rate of LPT by 9% for a period of two years.

This evening councillors first voted whether or not to vary the basic rate of LPT, then voted on what percentage to vary it by. The final vote was whether to set the local variation in LPT at 12% for a period of one year or two.

There were 21 votes for two years, six votes for one year and one abstention.