Local Property Tax Variations – 2016

Introduction

This note considers the impact of the decision to vary the basic rate (0.18%) of the Local Property Tax (LPT) by local authorities for 2016. Total adjustments reduce LPT revenue by over €36m in 2016 in eleven local authorities, while LPT is increased by €3.4m in four local authorities.

Background

Local authority councillors had until the 30th September to inform the Revenue Commissioners of their decision to increase or decrease the national LPT rate by up to 15 per cent for 2016. The ability to set a local adjustment factor is a reserved function (i.e. local councillors make a choice) .

LPT Variations

The total revenue to be collected in LPT for 2016 is €487.2 million (Pre-variation). Eleven local authorities chose to decrease their LPT rate for 2016 (see table 1). The reduction ranges from 1.5 per cent to 15 per cent. Five local authorities chose to reduce their basic rate by the full 15 per cent allowed under the LPT Act 2012; these were the four Dublin local authorities and Clare.
Fourteen councils varied their rate in 2015 and this affected approximately 1.1 million properties. Five local authorities increased their rates of LPT in 2016 over those that applied in 2015; Cork County, Limerick, Mayo, Westmeath and Wicklow.

Table 1

LPD T1-page-001

LPD T2-page-001(Source: DECLG and Local Authorities)

Notes:

* This figure excludes compensatory funding from DECLG post-variation which amounts to €1.27m. Local Authorities which show positive values for the variation are those which have applied the basic rate for 2016 and have secured this revenue for 2016. The local authorities are: Limerick, Mayo, Westmeath and Wicklow. These figures are not included in this calculation

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