Councillors in Mayo reject plan to hike Local Property Tax
The meeting at Aras an Chontae was told that Mayo County Council needs to raise revenue to fund additional expenditure.
Members of Mayo County Council have rejected a proposal to increase the base rate of Local Property Tax (LPT) by five per cent.
At the October meeting of the forum, Director of Finance Peter Duggan recommended that the base rate of LPT be increased from the current 10% to 15% for the years 2026 to 2029 inclusive. He said the existing base rate will deliver €1.01 million in revenue in 2026 and a further 5% increase in 2027 would generate €506,685 in extra income.
The meeting heard that figures from the Revenue Commissioners showed there were approximately 61,834 properties registered in Mayo for LPT in July, with 40,000 in the lowest band value up to €240,000 (LPT of €95) while 13,1717 properties are in the €240,000-€315,000 band (LPT of €235). Some 6,060 are in the €315,000-€420,000 band (LPT of €333), 1,545 in the €420,000-€525,000 band (LPT of €428) and the remaining 1,051 are valued above €525,000 (with a €1 million property subject to €999 LPT). The highest LPT of €3,110 applies to properties valued at over €2.1 million.
Mr Duggan said the effect of varying the base rate by 1% would result in a change of 95 cent per annum for the lowest valuation band which is for 62.4% of properties and €2.35 per annum for a further 23.3% of properties.
He outlined challenges faced by the council in framing its annual budget, which has been greatly impacted by inflation, stating: “Demand for current services is growing and there are significant needs requiring ongoing attention. In light of the significant erosion of income through inflation, the exceptional increases in energy and operational costs, and the emergence of almost €2.6 million in new and additional expenditure demands, an increase in the Local Property Tax adjustment factor is necessary.
“A modest increase in LPT will help restore the real value of local funding, protect essential public services, leverage substantial external investment opportunities, and ensure the council remains financially sustainable in meeting the needs of a growing and evolving county.”
Mr Duggan had proposed the additional income would be used to fund more hedge cutting and verge trimming, affordable housing, and piers and slipways maintenance.
However, Fianna Fáil Cllr Damien Ryan proposed to keep the rate as it currently stands.
“In order to maintain services as best we can, I propose that since we have held the rate since 2020 that there be no increase to LPT to any of our householders, that it would remain at the 10%, which gives certainty of €1.01m. I know it falls short of the ask but in the trying times people are in we have to manage the burden on services as much as we can.”
Independent Cllr Harry Barrett said householders in Mayo could not afford an increase in LPT, especially as many are currently paying €1,600 to fill an oil tank. He described the proposal as "unacceptable".
- Published as part of the Local Democracy Reporting Scheme.
