No change in Offaly property tax as Sinn Fein bid to cut it is defeated

THE Local Property Tax (LPT) rate will remain the same in Offaly after councillors overwhelmingly voted against a move to cut it.

The County Council has the power to vary the standard rates of LPT which are levied on every homeowner and for the past number of years the Offaly local authority has been applying the maximum increase of 15%.

This means that houses with the lowest valuation for the tax, up to €200,000, are taxed at €90 per annum, plus 15%, resulting in a bill each year for the householder of €103.50.

Councils have the option of retaining the tax at the standard rates, increasing it by any percentage up to 15%, or lowering it by any percentage by as much as 15%.

Those in favour of applying the 15% extra argue that the additional revenue generated triggers the release of major grant aid from the Government for infrastructural projects around the county.

Enhancements to towns and villages across Offaly have been part-funded by proceeds from the LPT but the tax has remained controversial and divides councillors.

At the September meeting of the council on Monday afternoon councillors met to decide on the tax and Fiona Millane, director of service, said that retaining the LPT at its current level would bring in €11.2 million in 2025.

Ms Millane said that 51.6% of residential properties in Offaly are in the valuation band up to €200,000 and a further 29.9% are in the next band, €262,500 (resulting in an annual bill of €225 before any variation).

Just 13.3% are valued between €262,501 and €350,000 for the purposes of LPT calculation. In the absence of any variation, those householders must pay €315 each year.

Retaining the tax with its 15% upward variation will bring in €748,000 each year, totalling €3.74 million over the five-year lifetime of the council which was elected this summer.

Ms Millane said LPT income of those amounts for Offaly would generate some €18 million in grants for Offaly.

Recommending that councillors stick with the status quo, the council director added that it can be reviewed each year.

Council Cathaoirleach, Cllr Tony McCormack, said there should be no change because the 15% extra was costing “very little per week” for most of those who were paying the tax.

His Fianna Fail colleague, Cllr Peter Ormond, formally proposed that the 15% variation be maintained and said all councillors wanted capital projects delivered but they all came with the caveat that funding from the Government had to be matched with funding from the local council.

Cllr Aoife Masterson, Sinn Fein, proposed that instead of varying the LPT upwards by 15% it should be reduced by 5%.

Cllr Masterson said that would alleviate the “real hardship” people were experiencing whereas other councillors were proposing to add to the hardship and ignoring communities.

The councillor also mentioned those who had to make choices between heating the house or buying food each week; feeding themselves or feeding their children.

Cllr Claire Murray, Fianna Fail, said she recognised the difficulty of the issue but the funding the council would receive by retaining the tax at the current level was very substantial.

Cllr Sean Maher, Sinn Fein, formally seconded Cllr Masterson's proposal and said a lot of people were struggling to pay bills and raising the tax would be a bad move.

Cllr Liam Quinn, Fine Gael, said more discussion should have taken place about the matter in advance.

Cllr Quinn said the funds needed to be distributed evenly across the county; provisional allocations should be put before councillors; and money for longer term projects should instead be considered for adaptations to homes for disabled people.

The councillor also said fixing the upward variation for perhaps two years instead of five could be considered. At the same time, he said the council should concentrate on eliminating its existing deficit completely.

Another Fine Gael representative, Cllr John Clendennen, said Sinn Fein should identify which services they were going to cut if they wanted the LPT reduced.

Cllr Fergus McDonnell, Independent Ireland, said he had always believed the LPT was unfair in that ordinary households were paying for projects central government should be funding.

Cllr John Leahy, independent, said he was in favour of the 15% upward variation and also “locking it in” for the full five years so that management would be able to forward plan better.

Cllr Leahy said the 15% extra amounted to 26 cent a week more, or €13.50 per annum for most households in the €90 bracket.

For those with difficulty paying, an exemption or freeze could be sought, he said, adding that council tenants did not have to pay LPT.

The Sinn Fein proposal would save households just eight cents each week or €4.50 each year, he said.

The Kilcormac councillor also defended the current Government: “They've done an absolutely fantastic job in providing money to this county.”

The council chief executive, Anna Marie Delaney, joined the debate and said the LPT income would allow larger projects like Edenderry Library, the Ferbane former convent project and the Banagher master plan to be progressed.

After a brief break so that the various groups on the council could discuss their proposals, two votes were called.

A proposal to retain the LPT at its current level was supported by 15 councillors and rejected by only four.

All the Fianna Fail and Fine Gael councillors backed the status quo, as did the independents Cllr John Leahy and Cllr Sean O'Brien.

The three Sinn Fein councillors voted against it, as did Cllr McDonnell.

The Sinn Fein proposal for a 5% variation below the standard rates was defeated by 15 votes to four.

The Cathaoirleach welcomed the decision. “We're not living in an Oliver Twist Offaly,” remarked Cllr McCormack.