Donegal County Council Logo
Home > Services > Finance Publications > Local Property Tax Adjustment Factor

Notice of the Passing of a Resolution to Vary the Rate of Local Property Tax

 

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.

 

Each year, the rate of Local Property Tax applicable in a local authority area returns by default to the baseline rate. Any adjustment upwards or downwards made in the previous year must be redecided. Local authorities may apply a local adjustment factor that is a maximum of +/- 15% of the baseline rate.

 

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 26th July 2021 to the effect that the basic rate of local property tax should stand varied by an increase of 15% for the year 2022 in respect of relevant residential properties situated in the local authority’s administrative area. 

 

The decision to increase the rate of LPT for 2022 by 15% of the baseline is not a cumulative increase on the rate of LPT that applied in 2021. The rate of LPT for 2021 was the baseline rate +15% and the rate of LPT for 2022 is the baseline rate +15%. Subject to the proposed changes to the Local Property Tax regime due to be enacted this year, including changes to valuation bands, the rates of LPT charges in Donegal for 2022 will remain the same as, or very similar to, the rates that applied in 2021.

 

Signed:        John G. McLaughlin

                    Chief Executive

Dated:         26th July 2021

 

Setting the Local Property Tax Adjustment Factor

 

Please Note: The LPT Public Consultation Period is now closed

 

The Local Property Tax, 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%.

 

The government has announced that it intends to make changes to the Local Property Tax (LPT) regime from 2022. It has been indicated that these changes will affect charges and valuation bands. As part of the review, the rate of the tax will be adjusted and the bands will be widened to make the changes affordable and to maintain the overall structure of the LPT. It is expected that most homeowners will face no increase when properties are re-valued on 1st November 2021. However, properties constructed since 2013, which are currently exempt, will become liable to the charge from 2022.

 

The rate of Local Property Tax in Donegal was increased by 15% for 2020 and was maintained at that rate for 2021. The same charges applied in 2021 as applied in 2020. In Donegal, approximately 51% of properties attracted a charge of €103.50, with a further 39% attracting a charge of €258.75. Over 90% of Donegal properties attracted charges in the lowest two valuation bands (Band 1 = €0 to €100,000; Band 2 = €100,001 to €150,000 – based on 2013 valuations).

 

Donegal County Council’s LPT income for 2021 is €26.8m (around 17% of total income). The money collected under 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.

 

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 2022.

  

Below you will find the 2022 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.

 

Notice of Consideration of Setting a Local Adjustment Factor

 

Please note: The LPT public consultation period is now closed

 

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 July 2021 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 9th July 2021 and be sent to:

 

Donegal County Council

LPT Submissions

County House

Lifford

County Donegal

or

[email protected]

 

Signed:                John G. McLaughlin

                            Chief Executive

 

Dated:                  21st June 2021

 

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 2022 by a maximum of 15% of the baseline rate.

 

In respect of 2020, the Council resolved at its meeting of the 30th September 2019 to increase the rate by 15% of the baseline rate. The rate of LPT was maintained at this level for 2021. The same charges applied in 2021 as applied in 2020.

 

 

What does this mean for the average household?

 

The government has announced that it intends to make changes to the Local Property Tax (LPT) regime from 2022. It has been indicated that these changes will affect charges and valuation bands. As part of the review, the rate of the tax will be adjusted and the bands will be widened to make the changes affordable and to maintain the overall structure of the LPT. It is expected that most homeowners will face no increase when properties are re-valued on 1st November 2021. However, properties constructed since 2013, which are currently exempt, will become liable to the charge from 2022.

 

In Donegal in 2021, approximately 51% of properties attracted a charge of €103.50, with a further 39% attracting a charge of €258.75. Over 90% of Donegal properties attracted charges in the lowest two valuation bands (Band 1 = €0 to €100,000; Band 2 = €100,001 to €150,000 – based on 2013 valuations).

 

Does the Council have to vary the rate of Local Property Tax for 2022?

 

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

 

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

 

Donegal County Council’s LPT income for 2021 is €26.8m (around 17% of total income). The money collected under 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 2022.

 

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

 

This decision was made at a Council meeting held in July 2021.  See above Notice of the Passing of a Resolution to Vary the Rate of Local Property Tax

 

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

 

The LPT public consultation period for 2022 ended on 9th July 2021.  

 

 

All submissions must be received by 9th July 2021.  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 2022
  • Financial Position of Donegal County Council at present
  • Estimated Financial effect of the varied rate in 2022
  • Feedback from the Public Consultation

 

 

 

 

 

 

Rate this Page

Select an option below

Map Services

Map Portal

  • winterweather Image
  • NWGreenway network icon
  • Donegal Tourism Logo
  • Rennet Image
  • NPPR Logo
  • Donegal Gathering Logo
  • Donegal Diaspora Logo
  • Public Art logo
  • Regional Cultural Centre logo
  • Spaceial logo
  • IrishWater
  • LEO