Donegal County Council is inviting submissions from members of the public on proposals to vary the basic rate of Local Property Tax in Donegal in 2020.
The Council is keen to hear views and opinions on any proposal to vary the rate of Local Property Tax, and in particular on the potential effects of any variance on households, individuals, businesses, and on Council services.
The Local Property Tax, which came into effect in 2013, is an annual tax charged on residential properties in Ireland. In accordance with the Finance (Local Property Tax) Act 2012 (as amended), a local authority may vary the basic rate of Local Property Tax within its own area by a maximum of +/- 15%.
This means that Donegal County Council can either increase or decrease the rate of Local Property Tax in Donegal in 2020 by a maximum of 15% of the 2019 rate.
For example, if a house is valued at under €100,000, the Local Property Tax payable in 2019 is €90. If the Local Property Tax rate is increased by 15%, this house-owner will pay €103.50 in 2020. I
f the Local Property Tax rate is reduced by 15%, then this house-owner will pay €76.50 in 2020.
The money collected under the Local Property Tax contributes towards the cost of providing a range of local Council services including libraries, public lighting, road maintenance, housing services, fire services, dealing with illegal dumping and littering, community initiatives, beach management, and tourism development initiatives.
An adjustment in the rate of Local Property Tax will have an impact on the Council’s capacity to deliver these services. For instance, if the LPT rate is reduced, then the income available to the Council will be reduced.
This, in turn, will limit the range and extent of services and supports that can be provided in 2020.
If the rate is increased, then the income available to the Council will be increased. This, in turn, will increase the Council’s capacity to deliver services and supports in 2020.
Having considered a range of issues, the Council could also decide not to vary the rate, thereby leaving the rate the same as for 2019.
To reiterate, Donegal County Council is keen to hear views and opinions on any proposal to increase or decrease the rate of Local Property Tax in Donegal in 2020. In particular, the Council invites comments concerning the potential effects of varying the basic rate of Local Property Tax, particularly any potential effects on households, on individuals, on businesses, and on Council services.