Donegal County Council is inviting submissions from members of the public on proposals to vary the basic rate of Local Property Tax in Donegal.
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%.
Donegal County Council can resolve to set the rate of LPT for multiple years.
Exemptions are in place, subject to qualifying criteria and conditions, for properties constructed using defective concrete blocks or certified as having pyritic damage.
In Donegal, 80% of homes attracted an annual charge of €103.50 (band 1) in 2024, with a further 12% attracting a charge of €258.75 (Band 2). 92% of Donegal properties attracted charges in the lowest two valuation bands (Band 1 = €1 to €200,000; Band 2 = €200,001 to €262,500).
Donegal County Council’s LPT income in 2024 is €28m and comprises around 15% of Donegal County Council’s total income for the year. The money collected under the Local Property Tax contributes towards the cost of providing a range of important local Council services including libraries, public lighting, leisure centres, road maintenance, housing services, theatres, fire services, dealing with illegal dumping and littering, community initiatives, beach management, and tourism development initiatives, among many others.
The rate of Local Property Tax in Donegal was first varied for 2020, when an increase of 15% was applied to the basic rates of LPT. No further increases have been applied since 2020, as the same rates have been maintained each year since 2020.
For 2025, Donegal County Council may resolve to maintain the rate of Local Property Tax at the same level as that which has applied since 2020, or to return to the baseline rates, or to vary the rate within a maximum range of +/- 15% of the baseline. Whatever decision is taken by the Council in September, rates of LPT in Donegal will not be any higher in 2025 than they have been for the period 2020 to 2024.
An adjustment in the rate of Local Property Tax would have an impact on the Council’s capacity to deliver 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 2025 and beyond.
To reiterate, Donegal County Council is keen to hear views and opinions on any proposal to vary the rate of Local Property Tax in Donegal. 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.
Further information, including a list of frequently asked questions, is available on www.donegalcoco.ie
The deadline date for receipt of submissions is the 23rd August 2024. Submissions should be made in writing, by email to [email protected], or posted to ‘Donegal County Council, LPT Submissions, County House, Lifford, Co. Donegal F93 Y622’.
Feedback from the public will be considered by the elected members of Donegal County Council as part of the decision-making process at a meeting to be held in September 2024, when a final decision will be made on setting the rate of Local Property Tax in Donegal for 2025.
