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Setting the Local Property Tax Adjustment Factor

 

Local Property Tax is an annual tax charged on residential properties in Ireland. A local authority may vary the basic rate of the Local Property Tax within its own area by a maximum of +/- 15%.

 

The rate of Local Property Tax in Donegal was increased by 15% for 2020. For 2021, Donegal County Council may resolve to maintain the rate of Local Property Tax at the same level as that which applied in 2020.  The Council may decrease the rate by a maximum of 15% of the baseline rate.

 

The rate of Local Property Tax cannot be increased beyond that which currently applies for 2020. However, having considered a range of issues, the Council may decide to leave the rate the same as for 2020.

  

Below you will find the 2021 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.

 

Notice of the Passing of a Resolution to Vary the Rate of LPT

 

The Finance (Local Property Tax) Act 2012 (as amended), makes specific provision that a local authority may pass a formal resolution to vary the basic rate of the Local Property Tax for its administrative area by a percentage known as the Local Adjustment Factor. Article 10 of the Local Property Tax (Local Adjustment Factor) Regulations 2014 requires a local authority that has decided to vary the basic rate of the local property tax within its administrative area to give public notice of that decision.

 

In pursuance of the provisions of section 20 of the Finance (Local Property Tax) Act 2012 (as amended), notice is hereby issued that Donegal County Council has passed a resolution at a meeting held on 28th September 2020 to the effect that the basic rate of local property tax should stand varied by an increase of 15% for the year 2021 in respect of relevant residential properties situated in the local authority’s administrative area. 

 

As a consequence of retaining the 15% increase for 2021, the rates of LPT charges in Donegal for 2021 will remain the same as those levied in 2020.

 

Signed:          John G. McLaughlin

                      Chief Executive

Dated:            28th September, 2020

 

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 2021 by a maximum of 15% of the baseline rate.

 

In respect of 2020, the Council resolved at it's meeting of the 30th September 2019 to increase the rate by 15% of the baseline rate. 

 

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 baseline rate. 

 

LPT Valuation Band  
LPT Baseline Rate

(charge as applied
2014-2019)   
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 for each of the years 2014 to 2019; a charge of €103.50 will have applied for 2020.

  

If the Local Property Tax rate remains the same for 2021, you will pay €103.50 Local Property Tax in 2021. If the rate of Local Property Tax reverts to the baseline rate, you will pay €90 Local Property Tax in 2021 (€13.50 less than in 2020). 

 

 

Does the Council have to vary the rate of Local Property Tax for 2021?

 

No, the Council could, having considered a range of issues, decide to leave the Local Property Tax at the same rate as in 2020.

 

 

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, for example.

 

 

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

 

If the rate is reduced, then the income available to the Council will be reduced. This in turn will limit the range and extent of services and supports that can be provided in 2021.

 

 

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 2020.

 

 

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 vary 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 21st August 2020.  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 2021
  • Financial Position of Donegal County Council at present
  • Estimated Financial effect of the varied rate in 2021
  • Feedback from the Public Consultation

 

 

 

 

 

 

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