Councillors face a decision next month whether or not to raise the tax
HOUSEHOLDERS in Limerick city might only see a modest rise in the property tax in two years’ time – if they witness one at all.
That’s according to a new forecast published yesterday, which shows that based on the rise in property values across Ireland, many people will face a double digit increase in Local Property Tax by 2019.
It is in this year that a revaluation of the unpopular measure will take place.
But with house prices in Limerick not rising at the same pace as they are nationally, local homeowners could be spared.
The increase in value of an average property in Limerick since 2013 has been just 8.8%, according to Central Statistics Office figures.
As an example, anyone with a property worth €80,000 in 2013 will still be in the €0 to €100,000 tax band come 2019. Limerick City and County councillors exercised their power to increase the tax by 10% – some five per cent less than the maximum they would be allowed.
But the Fianna Fail-Fine Gael coalition had previously increased the tax by the full 15%, the maximum allowed.
Cllr Cian Prendville, a long term critic of the tax, said: “I’m glad that this study suggests that may not affect Limerick as badly as other areas. In reality, however, this tax is regressive and should be abolished, and replaced with a wealth tax on assets over €1m. That would bring in a lot more, without hammering those who are already struggling to get by.”
Councillors face a decision next month whether or not to raise the tax.