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Setting the Local Property Tax Adjustment Factor

 

Local Property Tax is an annual tax charged on all residential properties in Ireland.  A local authority may vary the basic rate of the Local Property Tax within it's own area by a maximum of 15%.  This means that Donegal County Council can either increase or decrease the rate of Local Property Tax in County Donegal in 2019 by 15% of the 2018 baseline rate. 

  

Below you will find the 2019 Statutory Notice of Consideration of Setting a Local Adjustment Factor along with a set of Frequently Asked Questions to provide you with more information on the setting of the Local Adjustment Factor.

 

Local Property Tax - Notice of Consideration of Setting a Local Adjustment Factor

  

The Finance (Local Property Tax) Act 2012 (as amended), makes specific provision that elected members of a local authority may pass a formal resolution to vary the basic rate of the Local Property Tax for their administrative area by a percentage known as the local adjustment factor. At the meeting set by Donegal County Council to consider this matter, the members may set a local adjustment factor within the range of  + /- 15% of the basic rate, or, may decide not to adjust the basic rate.

 

Donegal County Council will meet in September 2018 to consider the setting of a local adjustment factor.

 

Donegal County Council welcomes written submissions from the public on this matter specifically covering the potential effects of varying the basic rate of the Local Property Tax on businesses, individuals and on local authority services.

 

Submissions must be received by the 17th August 2018 and be sent to:

 

Donegal County Council

LPT Submissions

County House

Lifford

County Donegal

Or

LPT@donegalcoco.ie

 

 

Signed:    Seamus Neely

                Chief Executive

 

Dated:  9th July 2018

 

 

Frequently Asked Questions

 

What is Local Property Tax (LPT)?

 

Local Property Tax (LPT) is an annual tax charged on all residential properties in the State and came into effect in 2013. A half-year payment was due in 2013, with a full-year payment due in 2014 and subsequent years. The LPT is collected by the Revenue Commissioners.

 

 

What is the Local Adjustment Factor?

 

A local authority may vary the basic rate of the Local Property Tax within its own area by a maximum of 15%.  This means that Donegal County Council can either increase or decrease the rate of Local Property Tax in County Donegal in 2019 by a maximum of 15% of the 2018 baseline rate.

 

In respect of 2018, the Council resolved at it's meeting of the 25th September 2017 not to vary the rate from the existing baseline figure. 

 

What does this mean for the average household?

 

The table below gives an indication of the rate of Local Property Tax for an average household in Donegal following a 15% decrease or increase on the 2018 baseline rate. 

 

LPT Valuation Band  

2018 LPT Baseline Rate   

15% Reduction  

 

15% Increase  

 

€0 - €100,000 €90 €76.50 €103.50
€100,001 - €150,000  €225 €191.25 €258.75
€150,001 - €200,000 €315 €267.75 €362.25
€200,001 - €250,000 €405 €344.25 €465.75

 

For example, if your house is valued at under €100,000, you will have paid €90 Local Property Tax in 2014, 2015, 2016, 2017 and 2018 in County Donegal. 

 

If the Local Property Tax rate were increased by 15% for 2019 you will pay €103.50 Local Property Tax.  If this rate is decreased by 15%, you will pay €76.50 Local Property Tax in 2019. 

  

 

Does the Council have to vary the rate of Local Property Tax for 2019?

 

No, the Council could, having considered a range of issues, decide to leave the Local Property Tax at the same rate as in 2018.

 

 

What is the money collected under the Local Property Tax used for in the Council?

 

This money contributes towards the cost of providing a range of local Council services including libraries, public lighting, road maintenance, housing services, fire services, supporting community initiatives, dealing with illegal dumping and littering, beach management and tourism development initiatives.

 

 

What will an adjustment in the Local Property Tax mean in terms of Council services?

 

If the rate is reduced and if funding is not available to replace this reduction, then a reduced level of income available to the Council will limit the range and extent of services and supports that can be provided in 2019.

 

If the rate is increased, then an increased level of income available to the Council will increase the capacity to deliver services and supports in 2019.

 

 

When will the Council make a decision on varying the rate of Local Property Tax in Donegal?

 

This decision will be made at a Council meeting to be held in late September 2018.

 

 

Can I give my views and opinions on any proposal to increase or decrease the rate of Local Property Tax?

 

Yes, Donegal County Council would like to hear your views and opinions on any proposal to increase or decrease the rate of Local Property Tax in Donegal.  We would like to hear your thoughts on the potential effects of varying the basic rate of the Local Property Tax on households, individuals, businesses and on Council services.

 

To make your submission you can write to:

 

Donegal County Council,

LPT Submissions,

County House,

Lifford,

Co. Donegal

 

or email: LPT@donegalcoco.ie

 

All submissions must be received by 17th August 2018.  There is no prescribed format for a submission.

 

All comments, including the names and addresses of those making comments, submitted to the Council in regard to this consultation process will form part of the statutorily required report to be presented to a meeting of Donegal County Council.  Accordingly, they may also be included in the minutes of that meeting and consequently may appear on the Council's website.

 

 

 What will the Council do with the submissions that are received?

 

The elected members of Donegal County Council will consider the feedback received from this public consultation as part of the decision-making process.  The Chief Executive will provide a summary of the written submissions received in a report to the elected members. 

 

In making their decision on whether or not to vary the rate, the elected members will consider the following:

 

  • Estimated Income and Expenditure for the Council in 2019
  • Financial Position of Donegal County Council at present
  • Estimated Financial effect of the varied rate in 2019
  • Feedback from the Public Consultation

 

 

 

 

 

 

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