Council say all property tax collected is money spent in Tipperary

Tipperary County Council has passed a resolution to increase the Local Property Tax by 15% for the next three years.

The motion carried 30 to eight votes (one absent, one abstained) at this week’s sitting of the Tipperary County Council plenary meeting.

Head of Finance Mark Connelly told councillors that money raised from the controversial tax is spent in communities.

“Any Local Property Tax generated in Tipperary stays in Tipperary,” said Mr Connelly.

In his presentation Mr Connelly said revenue generated from last year’s increase had gone into GMA funding, discretionary funding for districts, to support leisure and arts centres and projects under climate action.

Mr Connelly said with their proposal, this year’s increase would only come to less than €10 per year to almost 95% of homeowners.

He also said that a public consultation had been carried out in August, but only one submission was received.

WHAT ARE WE GETTING?

However, many of the councillors expressed concerns about raising the tax on families already struggling to make ends meet.

Cllr Seamus Morris said the presentation “annoyed” him because he couldn’t see the value for money.

He said rising housing prices mean fewer people will be in band one and increased costs mean the money generated won’t go as far, resulting in fewer services.

He pointed out that residents cannot get their grass cut, and taxpayers already pay for leisure centres, so they are paying twice.

“What are we getting out of this,” said Cllr Morris. He said they needed a wider discussion on funding from the central government.

And, he suggested any increase should be for one year.

Several councillors agreed with him.

Cllr Liam Browne said the figures given do not take into account inflation. He said it was unfair on people trying to pay mortgage.

Cllr Máirín McGrath said although costs have gone up, funding to the council from the Government has not.

She said she could not support the increase in a cost of living crisis.

“We are asking the taxpayer to make up for what is not coming from Government,” said Cllr McGrath.

Cllr David Dunne raised an issue around how the council value their properties for the purposes of tax.

He said this meant the council paid less tax than a private owner which they then get back.

Mr Connelly clarified that how the council value property is set out in legislation but acknowledged it is different in the private sector.

He said councillors sit on the boards of leisure and arts centres and the message coming back is that they need more funding.

The bands, Mr Connelly said were reviewed in 2021 and are not yet due to be looked at again.

When they were reviewed many people fell within the lower band, thus saving money.

He said he does acknowledge and agree with Cllr Browne’s point on inflation.

Amendment

However, Cllr Michael Smith pointed out that GMA funding had paid for a wheelchair-friendly swing in Roscrea and the resurfacing of Templemore playground, things people in the community had requested.

He also pointed out that it is only 5% over the increase they would have approved. He proposed an amendment to the resolution that the 15% increase should be for three years instead of five.

He also proposed that the allocation to GMA funding be increased. This is the amended motion that passed on voting.

Cllr Fiona Bonfield - who supported the amendment - said it was a very difficult decision. But, she said people do appreciate where the money goes when projects are completed in their communities.

Cllr Moloney said that GMA funding had paid for festivals in the last year that could not have survived otherwise.

Tipperary County Council CEO Sinead Carr clarified that property tax does not go to operational or staff costs at the council.