Submissions are invited from members of the public on proposals to vary the basic rate of Local Property Tax in Donegal in 2019.
Donegal County Council is keen to hear the views and opinions on any proposal to vary the rate of Local Property Tax and in particular, on the potential effects of this on households, individuals, businesses and indeed on Council services.
Local Property Tax is an annual tax charged on all residential properties in Ireland and came into effect in 2013. In accordance with the Finance (Local Property Tax) Act 2012 as amended, local authorities may vary the basic rate of Local Property Tax within its own area by a maximum of 15%.
This means that Donegal County Council can either increase or decrease the rate of Local Property Tax in Donegal in 2019 by a maximum of 15% of the 2018 rate.
For example, if a house is valued at under €100,000, the Local Property Tax in 2018 would have been €90. If the Local Property Tax rate is increased by 15%, this house owner will pay €103.50 in 2019 and if the Local Property Tax rate is reduced by 15%, then this house owner will pay €76.50 in 2019.
The money collected under the Local Property Tax contributes towards the cost of providing a range of local Council services including libraries, public lighting, road maintenance, housing services, fire services, dealing with illegal dumping and littering, community initiatives, beach management and tourism development initiatives.
An adjustment in the rate of Local Property Tax will have an impact on the Councils capacity to deliver these services. For instance, if the rate is reduced and if funding is not available to replace this reduction, then the income available to the Council will be reduced which will in turn limit the range and extent of services and supports that can be provided in 2019.
If the rate is increased then an increased level of income available to the Council will increase the capacity to deliver services and supports in 2019.
Having considered a range of issues, the Council could also decide not to vary the rate and to the leave the rate the same as in 2018.
Donegal County Council is keen to hear the views and opinions on any proposal to increase or decrease the rate of Local Property Tax in Donegal in 2019. In particular, the Council would like to find out more about the potential effects of varying the basic rate of Local Property Tax on households, on individuals, on businesses and indeed on Council services.
Further information, including a list of frequently asked questions is available on www.donegalcoco.ie .