Leitrim councillors back proposal to fix Local Property Tax rate for three years

Leitrim County councillors have backed a motion fixing the current Local Property Tax rate for the next three years.

Last year councillors voted to vary the rate by 15% for 2022.

At Monday's council meeting in the Bush Hotel it was agreed to leave the rate unchanged for 2023, 2024 and 2025.

Chief Executive, Lar Power, explained that the Council has a “very ambitious and aggressive programme” for investment planned for the county and the income generated through the Local Property Tax is vital in helping the local authority generate match funding for major capital works.

He noted that recent changes meant that members could now fix the rate for three years and he recommended that the current payment, agreed last year, be left unchanged for the coming three years.

Cllr Enda McGloin proposed that the LPT be set for three years noting that it is not increasing and this was seconded.

Head of Finance, Vincent Dwyer explained that recent changes to the LPT bands mean 22% of those previously paying the higher Band B charge have been moved into Band A, a much lower rate.

He said that Leitrim has the highest percentage of households paying the lowest rate of LPT in the country with 83% of properties falling into Band A.

He noted that the fluctuations in the income coming from commercial rates meant that there was a lack of certainty in the income generated and said fixing the LPT would offer some certainty.

However there was initially some dissension over the proposal with councillors noting that people were already facing significant increases in the cost of living.

Cllr Brendan Barry put forward a counter-proposal arguing that the LPT should not be fixed for three years, saying that “with everything that is coming (financially) for families this is one of the costs for households that the Council can control. I don't think we should set the LPT for three years,” he said.

Cllr Padraig Fallon seconded this counter motion.

While other councillors agreed that Cllr Barry had raised valid concerns they noted this money was essential for ensuring further capital investment in communities.

Mr Dwyer explained that councillors could still revisit the fixing of the LPT if there were exceptional circumstances during the next three years.

Following this assurance, Cllr Barry said he would withdraw his counter proposal adding “I am a little bit more content knowing that there is a way we can revisit this decision (on the LPT rate) again if we need to during the next three years.”