Limerick householders may face rise in Local Property Tax

COUNCILLORS will this Monday decide whether to increase the Local Property Tax (LPT) for next year in order to pay for local services.

Local authorities across the State have the power to vary the charge, which is payable by most property owners in Ireland and is based on the value of their home.

They can either cut the rate by 15% or, for the first time, increase it by a maximum of 25%, up from 15% in previous years.

For an ordinary Irish household, a 25% increase in LPT would mean paying between €20 and €107 extra a year, depending on the property's valuation band, on top of the existing charge.

The additional revenue would help pay for local services, with the council standing to receive up to €4.2m in extra funding.

In a briefing note circulated ahead of the 3pm meeting, the council has listed what it describes as “additional unfunded demands” it is facing next year.

These include construction-related inflation, additional funding for homelessness services, increased spending on road maintenance and the need to make up a shortfall in the Regeneration programme.

In a private briefing, Limerick Live understands that Mayor John Moran recommended that councillors adopt the maximum 25% increase.

However, when contacted, a spokesperson for the mayor said he had “ruled nothing out and nothing in”.

“That being said, Limerick is significantly underfunded, and while Government continues to weaken the financial position of local authorities all across the country, it is incumbent on Limerick to stand on its own two feet and fend for itself where it can,” the spokesperson added.

It will ultimately be for councillors to decide whether the rate goes up, down or is frozen.

If the rate is increased to 25%, it would represent a 10-percentage-point increase in the basic rate compared with the current 15% adjustment. However, the actual increase in the bill for property owners would be approximately 8.7%.

This is because the council decided to increase LPT by 15% above the basic rate for this year, meaning local property owners are already paying more than the standard charge.

The mayor's spokesperson said he would not commit to any position on whether to vary the property tax until he receives a response to a list of requests concerning projects and proposals that could benefit from the funding generated.