Only three councillors back move to minimise property tax

CLARE County Council has backed a proposal to maintain the Local Property Tax (LPT) rate at 15% above the standard rate for 2023 and 2024, despite opposition from three councillors.

Members decided not to change the LPT Local Adjustment Factor that is payable for Clare homeowners for the next two years in line with what was in place in 2020, 2021 and 2022.

An amendment proposed by Councillor Gerry Flynn calling on the council to reduce the LPT for 2023 by 15% and to only apply the change for one year didn’t secure the required level of support.

It was backed by Councillor Flynn, Councillor Donna McGettigan and Councillor Ann Norton but was opposed by 23 other councillors.

Councillor Gerry Flynn said it is easy to get bogged down on statistics but for most people they are concerned about coping at a time when the cost of living has gone out of control.

“For more than 18,000 people that are on the margins that previously had their property on the zero to €100,000 that no longer exists the chief executive is asking councillors to increase the standard rate by 15% for 2023 and 2024. I believe this is a disgraceful request.

Councillor Donna McGettigan said it is unjust to increase the LPT above the standard rate at a time when people were struggling.

Even if the increase is equivalent to a few Euro a day, she said a decrease could help some people to put a “pint of milk on the table”.

Councillor Ann Norton noted Minister Simon Coveney had acknowledged there were difficult times ahead for people during a very difficult winter.

While the government was planning to provide some support to people to defray the cost of spiralling electricity bills, Councillor Norton stressed the council had to be aware people were finding it difficult to put food on the table.

“People are scared of what is coming. We are after coming out of Covid-19 and now we are going into another financial hit for so many people. The council should be reducing the LPT by 15% to help people.”

While Councillor Pat Hayes said everyone would like to reduce the LPT rate, he pointed out there has been major changes in the bands that resulted in local property owners paying about €1.5 million less than last year.

In addition to five out of every ten property owners paying €104, he said more than 7,600 people have moved down to Band One and 3,500 to Band Two.

“The majority of people in Clare are paying far less than they were last year. If we go to the standard rate we will lose €1.37 million. I don’t see anyone coming down here to give us this money.”

While Councillor Johnny Flynn initially felt councillors should reduce the LPT, he noted the government has reduced the charges on the bands to the extent that Clare property owners would have an extra €1.5 million in their pockets next year.

He asked for clarification for the number of Clare householders who would experience a significant reduction in their LPT and those who wouldn’t and what they would be paying.

Noting all of the comments and concerns, chief executive Pat Dowling said it would be disgraceful for him not to manage the council finances appropriately to ensure the authority pays it way and covers its costs.

Mr Dowling pledged to try and maintain supports in local communities as part of Budget 2023.

In a report prepared for members, it was noted if the LPT rate is reduced to the standard rate there will be €1.37m less to fund services in the draft budget 2023.

If this income was lost, members as part of the draft 2023 budget process may need to review service delivery, discretionary spend areas or income sources to balance a budget.

Current statistics as supplied by Revenue indicate that 51% of properties in County Clare have been valued in the lowest band for 2022. For 51% or 5 out of every 10 homes, a 15% change in the standard LPT rate would reduce their annual bill by €13.50 per annum. A 15% reduction below the standard rate would result in a saving of €27 per annum for this group.