No change to Local Property Tax levy for Tipperary householders for next two years

Tipperary County Council has voted in favour of fixing the Local Property Tax for the county’s householders at 10% above the base rate for another two years to raise just over €2m in revenue for leisure and arts centres, investment in infrastructure and a range of community initiatives.

The recommendation put to the council’s elected members at their monthly meeting in Nenagh on Monday to continue with levying the tax at 10% above the base rate for 2023 and 2024 was approved by 27 votes to 10.

The decision means the LPT will remain at the same level as this year’s levy for Tipperary households over the next two years.

Before the vote, the council’s Director of Finance Liam McCarthy outlined that implementing the 10% “local adjustment factor” on the Local Property Tax would yield extra revenue of €1,034,710 per annum for the council.

An amendment to regulations in July meant the council could fix the LPT rate for more than one year.

He told councillors that next year €431,030 or 41.7% of the €1.034,710 revenue raised as a result of fixing the LPT at 10% above the base rate would be allocated to leisure centres and arts centres.

A total of €190,000 will go to council-run leisure centres in Clonmel, Tipperary Town and Nenagh. While the €241,030 balance will go to leisure and arts centres supported by the council including in the south of the county, Carrick-on-Suir’s Sean Kelly Sports Centre, South Tipperary Arts Centre, Tipperary Excel and the Canon Hayes Recreation Centre.

The remaining €603,60 (58.3%) of the extra LPT revenue will go to the General Municipal Allocation (GMA) in each Municipal District for investment in maintaining infrastructure such as roads, lighting and footpaths, painting schemes, community groups, amenities, local festivals and other initiatives.

For 2024, he said it was proposed to allocate €603,680 of the €1.034m revenue raised to the General Municipal Allocation and the spending of the remaining €431,030 will be decided by councillors during the 2024 Budget.

Mr McCarthy stressed the council’s upcoming budget for 2023 will be “most challenging” due to the impact of inflation and energy price increases.

It was the council’s aim to maintain all its existing services at current levels and enhance services where possible. He said the council also had to provide matching funding for projects in its capital programme.

Mr McCarthy pointed out that changes to the property valuation bands finalised last November mean that the Local Property Tax is now reduced for many households in the county.

In the current year, for example, 22% of households in Tipperary have moved from LPT valuation Band Two to the lowest Band One valuation, which has resulted in a €148 drop in their LPT levy to €99.

Independent Cllr Seamus Morris, Workers & Unemployment Action Group Cllr Pat English, Sinn Féin councillors David Dunne and Tony Black voiced opposition at the council meeting to a continuation of levying the LPT at 10% above the base rate for another two years.

Cllr English from Clonmel objected to the fact the recent public consultation process about the LPT didn’t include the proposal to fix the rate for two years instead of one.

He was informed by Mr McCarthy that the public consultation process was carried out in line with regulations and the council received no submissions from the public. Mr McCarthy said the LPT could be amended next year if over 30 members wished that to be done.

Cllr English said he was very disappointed with the council’s recommendation and maintained that fixing the LPT at 10% above the base rate was first approved by the council in 2019 as a “once off”.

He called for the LPT to revert back to its base rate and declared that he was opposed to taxation on family homes as people were already paying a vast amount of taxes on their homes. What had really happened, he argued, was that central Government reduced the funding it paid to the Local Authority Fund and it was central Government that should now make up the shortfall in the council’s funding.

Cllr David Dunne agreed with Cllr English. In light of the serious cost of living crisis when people will have to choose between eating or heating themselves, he said he couldn’t support fixing the LPT at 10% above the base rate. He pointed out that if his party got into Government, it would abolish the LPT.

Clonmel Fianna Fáil Cllr Siobhán Ambrose, however, proposed the adoption of the council’s recommendation and Fine Gael’s Cllr Marie Murphy, seconded its adoption.

“I think this recommendation before us brings clarity to house owners and it will ensure that whatever property tax is paid in 2022 will be the very same amount in 2023 and 2024," said Cllr Ambrose. 
“I think it’s also hugely important that this recommendation will ensure all the services will continue,” she added.

Clonmel Fine Gael Cllr John Fitzgerald said he despaired of the “slavish arguments” made every year against adopting an LPT rate above the base level.

And he accused Cllr English of hypocrisy, pointing out that as Mayor of Clonmel, he will cut the tape on some nice projects during his term but was not willing to support revenue measures to help fund them.