Councillors make decision on rate of property tax in Mayo
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Members of Mayo County Council have rejected a proposal to increase the rate of the Local Property Tax (LPT) in Mayo to 15% beyond the case rate.
Currently, the variation rate stands at 10% but the local authority's Director of Finance Peter Duggan recommended the increase on the grounds that the council needs additional revenue for capital expenditure.
The meeting heard that there were two public submissions against the proposal, one citing cost-of-living increases and the other the limitations of the old age pension.
Mr Duggan told councillors that based on estimates of local property tax for 2026, the council will be significantly reliant on Exchequer Equalisation Funding, which will amount to over €22 million for 2026. He said there are currently 61,065 properties registered in Mayo for LPT and more than 60% of these (38,000) are in the lowest valuation band of less than €240,000. A 15% variation would add €14.25 per annum to their LPT while properties valued in the band €420,001 to €525,000 would incur an increase of €64.20 per annum.
The Director of Finance added that the council’s capital programme alone amounts to €157m and requires match funding of €63m. The council currently has €29m in place with the €36m balance yet to be found. He further noted there are future current costs, including an increase in payroll arising from national pay agreements and gratuity costs, in addition to the costs of implementing a strategic workforce as well as costs around the move of Uisce Éireann to a single water utility. Taking into account inflationary demands, Mr Duggan said demand for current services is growing and there is an onus on the council to maintain services and develop infrastructure in Mayo.
A number of councillors objected to the 15% proposal on the basis of economic hardship and spiralling cost-of-living prices, saying it was too much to ask of families in current times. Following a lengthy debate, councillors voted in favour of retaining the current 10% variation rate.
