The Local Property Tax (LPT), which came into effect in 2013, is an annual tax charged on residential properties in Ireland. In accordance with the Finance (Local Property Tax) Act 2012 (as amended), a local authority may vary the basic rate of Local Property Tax within its own area by a maximum of +/- 15%. New Regulations came into effect in 2022 that allow for a local variation decision to apply for a period of more than one year.
Exemptions are in place, subject to qualifying criteria and conditions, for properties constructed using defective concrete blocks or certified as having pyritic damage (Local Property Tax (LPT) exemptions for 2022 to 2025 (revenue.ie).
The rate of Local Property Tax for 2025 cannot be increased beyond that which currently applies for 2024. However, having considered a range of issues, the Council may decide to leave the rate the same as for 2024.
The rate of Local Property Tax in Donegal was first varied for 2020, when an increase of 15% was applied to the basic rates of LPT. The increased rates have been maintained each year since then. For 2025, Donegal County Council may resolve to maintain the rate of Local Property Tax at the same level as that which has applied since 2020, or to not vary the rate from the baseline, or to vary the rate within a maximum range of +/- 15% of the baseline.
In Donegal, 80% of homes attracted an annual charge of €103.50 (band 1) in 2024, with a further 12% attracting a charge of €258.75 (Band 2). 92% of Donegal properties attracted charges in the lowest two valuation bands (Band 1 = €1 to €200,000; Band 2 = €200,001 to €262,500).
Donegal County Council’s LPT income for 2024 is €28m (around 15% of total income). The money collected from the Local Property Tax contributes towards the cost of providing a range of important local Council services including swimming pools, libraries, theatres, public lighting, road maintenance, housing services, fire services, dealing with illegal dumping and littering, community initiatives, grants to community/voluntary groups, beach management, public conveniences, tourism promotion and economic development initiatives, amongst many other things.
An adjustment in the rate of Local Property Tax would have an impact on the Council’s capacity to deliver these services. For instance, if the LPT 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 2025 and beyond.
Below you will find the Statutory Notice of Consideration of Setting a Local Adjustment Factor 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 2024 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 23rd of August 2024 and be sent to:
Donegal County Council LPT Submissions County House Lifford County Donegal Or |
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. The LPT is collected by the Revenue Commissioners.
Are there any exemptions to the payment of LPT?
Yes, the following exemptions apply subject to qualifying criteria:
(a) Properties constructed using defective concrete blocks.
(b) Properties unoccupied for an extended period due to illness of the owner.
(c) Properties purchased, adapted, or built for use by an incapacitated person.
(d) Properties certified as having pyritic damage.
(e) Properties fully subject to Commercial Rates.
(f) Properties owned by a charity or public body.
(g) Registered nursing homes.
Further details, including qualifying conditions, are available at Local Property Tax (LPT) exemptions for 2022 to 2025 (revenue.ie)
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 by a maximum of 15% of the baseline rate.
The rate of Local Property Tax for 2025 cannot be increased beyond that which currently applies for 2024. However, having considered a range of issues, the Council may decide to leave the rate the same as for 2024.
Can local authorities make a local variation decision for more than one year?
Yes, the Local Property Tax (Local Adjustment Factor) Regulations 2022 allow for a local variation decision to apply for a period beyond one year.
The Council is required to follow the processes as outlined in Regulations and Guidance i.e., full consultation with public, report prepared for elected members, resolution passed, and relevant parties notified. However, for example, the Council may then decide to apply an upward variation of 10% for three years without having to revisit the matter again until the three years have passed.
Does the Council have to vary the rate of Local Property Tax for 2025?
No, the Council could, having considered a range of issues, decide to leave the Local Property Tax at the baseline rate.
What does this mean for the average household?
In Donegal, 80% of homes attracted an annual charge of €103.50 (band 1) in 2024, with a further 12% attracting a charge of €258.75 (Band 2). 92% of Donegal properties attracted charges in the lowest two valuation bands (Band 1 = €1 to €200,000; Band 2 = €200,001 to €262,500).
What is the money collected under the Local Property Tax used for?
Donegal County Council’s LPT income for 2024 is €28m (around 15% of total income). The money collected from the Local Property Tax contributes towards the cost of providing a range of important local Council services including swimming pools, libraries, theatres, public lighting, road maintenance, housing services, fire services, dealing with illegal dumping and littering, community initiatives, grants to community/voluntary groups, beach management, public conveniences, tourism promotion and economic development initiatives, amongst other things.
What will an adjustment in the Local Property Tax mean in terms of Council services?
An adjustment in the rate of Local Property Tax would have an impact on the Council’s capacity to deliver these services. For instance, if the LPT 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 2025 and beyond.
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 September 2024.
Can I give my views and opinions on any proposal to vary 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: [email protected]
All submissions must be received by 23rd August 2024. There is no prescribed format for a submission.
All comments, including the names and addresses of those making comments, submitted to the Council regarding this consultation process will form part of the statutory 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 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:
Select an option below
