Property Tax to remain unchanged despite €2.7m Council finances shortfall

Meath’s 68,000 householders can afford to breathe a sigh of relief after councillors voted overwhelmingly not to increase the Local Property Tax for 2022.

Citing fears over the effects of the Covid-19 pandemic, councillors held back on increasing the tax. Thirty three councillors voted not to increase the basic rate while three members of the council wanted to vary the rate and four members were absent from the meeting. It means that the basic rate will not change from last year.

There is a shortfall of €2.7million in the Council’s budget for next year and council officials had asked for a 15 per cent increase in the tax for next year in order to bridge that gap. Although not directly related, the Council has been able to boast that its ratepayers have seen no increase in their rates for several years.

There were complaints during the debate on LPT that Meath was among the lowest-funded counties in the State. Calls were also made for fundamental reforms of the LPT system, and also for its abolition.

Council Chief Executive Jackie Maguire said that a revaluation of properties throughout the country later this year. This is being carried out by the Revenue Commissioners and its officials are already out on the ground carrying out this process. The LPT will provide €14 million of the Council’s revenue of €155 million for 2022.

Head of Finance Fiona Lawless said that property evaluation bands will be widened later this year but added that the vast majority of householders would see little change in the amount they have to pay.

Under changes put forward by Government new properties will be brought into the LPT system each November and there will be a revaluation of properties every four years. The changes are expected to bring in an extra €70 million over what is raised from current LPT measures. Meath Co Council has picked up revenue from LPT for about eight years at the rate of about €17.5m collected each year. Twenty per cent goes to the central Equalisation Fund and the council is allowed to retain €14 million. Councillors who are against reducing the rate of LPT sought by the council argue that the money raised through this tax provides revenue for important work in their local communities.

The council argues that it has an ageing staff and that means a heavier burden in paying out retirement lump sums and pensions. Fifty million euros of the Council’s budget goes on payroll.

Ms Lawless told the Council said that a public consultation process had taken place and there were 44 online submissions and three letters and emails. Of the 47 submissions, 30 sought reduction, three requested an increase and 14 said leave the rate as it is.

No appetite for LPT hike amongst cllrs

In reply to a question from Independent Cllr Alan Lawes, the Council finance officer said she was unable to say how many counties around the country would have to avail of the equalisation fund, but would try to get that figure for him.

Independent Cllr Gillian Toole said it was disappointing that just 100 people out of almost 200,000 population in Meath had responded to the public consultation process. She also said that there was proposed expenditure of €94m on utilities, postage etc in the council’s budget and wondered if there could be reductions in internal costs. Ms Lawless said the council already looked for best value from suppliers etc. They were constantly looking for savings.

Fine Gael Cllr Alan Tobin said that these were uncertain times and a lot depended on how the economy would recover. He said that a €10-30 increase per household would bring in €200,000 per municipal district. He felt that people would accept an increase if the Council spent the money well.

Fine Gael Cllr Gerry O’Connor said he could see no justification in a decrease of the LPT. He suggested keeping the LPT at the current rate, with no variation.

Independent Cllr Brian Fitzgerald said that the members of the Technical Group on the council felt that the LPT should remain at its present rate, with neither an increase or decrease. He accused the Government of running away from its promise to review the LPT system.

Social Democrat Cllr Ronan Moore also criticised the Government for delaying to act on its own baseline review of the LPT. “At its heart the LPT was meant to be a way of generating money locally that would be spent locally.

However, Meath again collected €17.5m this year which first goes to central funds but will only receive €14m back with the other €2.5m being spent elsewhere.

While the Government may argue that this equalisation may help counties that are geographically larger than ours but have a much smaller population, it fails to recognise the exponential growth in our population over the last 20 years”. He argued that Meath County Council was the worst funded county in the country.

Labour Party Cllr Elaine McGinty said that said that development of infrastructure had not kept pace with the growth of population in the county. She aid she was in favour of keeping the LPT rate as it was but said that the LPT should be included as a separate line in the council’s budget. The council needed to show value to the residents of the county.

Fianna Fail Cllr Mike Bray said he would be voting to keep LPT at the same rate. “It is the best balance we can put forward in maintaining our revenue for the people.”.. Fifty three per cent of households would see no change in their LPT, he said.

Fine Gael Cllr Paddy Meade said there was a desperate need for spending on roads, parks and other public utilities and he was voting to maintain the current LPT rate.

Sinn Fein Cllr Eddie Fennessy said that his party opposed the Local Property Tax. What was needed instead was a wealth tax, he said. His party proposed reducing LPT from 15 per cent this year.

Independent Cllr Nick Killian criticised the fact that not one Dail deputy from Meath had attended the Zoom debate on the tax. They should be bringing back the message to Government that Meath was one of the lowest-funded counties in the country.