2 days ago
- Business
- Irish Independent
Cork county councillors vote to increase property tax – by another five per cent in adjustment rate
The revenue raised by the LPT goes to fund local government services. Local authorities are allowed to vary the basic rate of the property tax by applying a Local Adjustment Factor (LAF). Following the vote in Cork County Council, the LAF in the county will now go from the current 10% to 15% in 2026.
Three-quarters of the county's houses are valued at under €420,001 and those householders will now face an increase in their annual property tax bill ranging between €4.75 and €16.65, depending on the valuation band that their property is in.
The council's director of finance, Lorraine Lynch, told the councillors that an increase in the LAF to 15% would increase the council's funding next year by €1.9m. She said that due to inflation, maintaining council services at their current levels would require an additional €5.6m in 2026.
Cllr Patrick Gerard Murphy (Fianna Fail), supported by Cllr Michael Hegarty (Fine Gael), put forward an amendment to the executive's proposal, calling for all of the €7.6 million in extra revenue collected as a result of the increased LPT rate to be allocated directly to municipal districts to fund capital works.
'For the Fianna Fail party here to support the 5% increase, notwithstanding it being a small increase per household, we want to see it being used in a very tangible way that people can actually visualise and see on the ground,' Cllr Murphy said.
A counter-proposal to leave the rate at the current 10% was put forward by Independent Ireland's Cllr Danny Collins and seconded by independent Cllr Peter O'Donoghue.
'Basically, we should be going back to our government if we need additional funding for our local authority, it is up to our government to do it. That's where the buck stops. It's not for us to be putting extra pressure on families out there,' Cllr Collins said.
Forty-one councillors voted in favour of Cllr Murphy's proposal and nine voted against. Voting in favour were Fianna Fail, Fine Gael and the Social Democrats. Voting against were Independent Ireland, Labour, Sinn Fein and independents.
