Donegal County Council is inviting submissions from members of the public on proposals to vary the basic rate of Local Property Tax in Donegal in 2023.
The Council is keen to hear opinions on any proposal to vary the rate of Local Property Tax and on the potential effects of any such variation on households, individuals, businesses, and 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%.
The rate of Local Property Tax in Donegal was increased by 15% for 2020 and was maintained at that rate for 2021 and 2022. The same charges applied in 2022 as applied in 2021 and 2020 (although the Valuation Bands were restructured from 2022 and are now based on property valuations as at 1st November 2021). In Donegal, approximately 78% of properties attracted a charge of €103.50 for 2022, with a further 13% attracting a charge of €258.75. 91% 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 for 2022 is €26.8m (around 17% of total income). The money collected under the Local Property Tax contributes towards the cost of providing a range of important local Council services including swimming pools, libraries, theatres, public lighting, road maintenance, housing services, fire services, dealing with illegal dumping and littering, community initiatives, grants to community/voluntary groups, beach management, public conveniences, tourism promotion and economic development initiatives, amongst other things.
An adjustment in the rate of Local Property Tax would have an impact on the Council’s capacity to deliver these 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 2023.
Further information, including a list of frequently asked questions, is available on www.donegalcoco.ie
The deadline date for receipt of submissions is the 22nd August 2022. Submissions should be made in writing, by email to LPT@donegalcoco.ie, 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 in September 2022, when a final decision will be made on setting the rate of Local Property Tax in Donegal for 2023.
