Council could lose property tax boost on land hoarding penalty
The boost to Galway County Council’s coffers generated through the controversial hike in Local Property Tax could be wiped out in one fell swoop – by a new Government-imposed penalty on land hoarding.
A majority of Galway County Councillors voted in September to increase LPT on homes in the county by 15% for five years, a measure that management said would rake in an extra €2.4m to Council coffers in 2025 and every subsequent year.
But it emerged this week that the County Council could be liable for a new tax to stop land-hoarding – and that tax bill could eat into extra monies generated by the increase in LPT.
Councillor Geraldine Donohue (Ind) said she was “very concerned” about the uncertainty about the implications of the Government’s new Residential Zoned Land Tax (RZLT).
Chief Executive of Galway County Council Liam Conneally confirmed that provision in the Council’s budget for 2025 would have to be made to cover any potential liability under RZLT – but he conceded he did not know yet how much it would cost.
Cllr Donohue had submitted a written query to the October plenary meeting, asking for the total amount of land in hectares owned by the Council that is zoned residential.
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