Councillors rule out hike in property tax – despite financial dire straits
Galway County Councillors have rejected calls to increase Local Property Tax, amid warnings from the Council Executive that the local authority is in dire financial straits – with members threatening to ‘go nuclear’ and refuse to pass a budget unless additional Government funding was forthcoming.
At a meeting this week, councillors unanimously vetoed a proposal to increase the charge and called on Government to provide funding for the local authority which they said had been severely underfunded for far too long.
In a report to councillors, Acting CEO of Galway County Council Kevin Kelly said that a 15% increase in LPT – the maximum increase available to councillors – would add an additional €2.2 million to the coffers, and warned that they faced a deficit in 2020 of between €1.5 million and €2 million.
He said if councillors didn’t opt to increase the LPT rate, which remained unchanged since its introduction in 2013, they would be looking at an increase in Commercial Rates and severe cutbacks in Council services.
“The Commercial Rate cannot be increased in 2022 and if it’s not increased for 2021, it will not have increased for 15 years,” something Mr Kelly said was “unsustainable”.
He said 15% increase would amount to a €13.50 per annum increase for 36.5% of households, a €34 per annum increase for 32% of homeowners and a €47 per annum increase for just under a quarter of property owners.
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