Kilkenny councillors vote by majority to retain maximum rate of Local Property Tax

Councillors from across Kilkenny have voted by majority to retain the adjustment rate for the Local Property Tax (LPT) rate at the maximum level of +15% for the next five years.

The local authority may resolve to vary the basic rate of the LPT within its functional area by a maximum of +/-15%.

Independent councillors Eugene McGuinness and Maurice Shortall voted against the proposal to retain the current rate of +15% for the next five years, and there was one abstention.

Cllr McGuinness put forward a counter-proposal that the LPT adjustment rate be revisited annually, which was seconded by Cllr Shortall, but defeated.

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It was relayed to elected officials at the meeting by Head of Finance Martin Prendiville that much of the money raised by the LPT ‘goes back into local services’.

Mr Prendiville stated that having certainty on the adjustment rate also allows the local authority to improve ‘long-term planning’.

Cllr Seán Ó hArgáin concurred, stating that ‘we have to have certainty over the next number of years’.

“We’re consistently one of the lowest funded systems of local government in Europe,” he added.

ABOUT LPT
Local Property Tax (LPT) is an annual tax charged on all residential properties in the State and came into effect in 2013. The LPT is collected by the Revenue Commissioners.

A local authority may vary the basic rate of the Local Property Tax within its own area by a maximum of +/- 15%.

Under the Local Property Tax (Local Adjustment Factor) Regulations 2022, the local authority is granted permission for a local variation decision to apply for a period beyond one year.

In order to revert to this decision, Kilkenny County Council would have to repeat the process as outlined in Regulations and Guidance i.e. full consultation with the public, preparation of a report for elected members and a formal revoking of the resolution in accordance with the standing orders.

WHO MUST PAY?
If you own residential property on November 1, including rental property, you must pay LPT. This date is called the liability date.

If there is more than one owner, you need to agree on who will pay the tax, otherwise, Revenue can collect it from any of the owners.

The LPT is a self-assessment tax, so you calculate the tax due based on your own assessment of the market value of the property.

There are different rates of LPT depending on which range, or valuation band, your property value is in.

Residential properties of the same value in different local authority areas may pay different amounts of LPT, depending on whether the local authority has applied a local adjustment factor or not.

OTHER AREAS
In 2024, just four local authorities in Ireland used a local adjustment factor that reduced the rate including Fingal County Council at -7.5%, Dublin City Council at -15%, Dún Laoghaire Rathdown County Council at -15% and South Dublin County Council at -15%.

Twelve local authorities, including Kilkenny, had the maximum rate of +15%.

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