Council officials hoping for hike in property tax

Cash-strapped city officials are hoping for a hike in the rate of Local Property Tax imposed on homeowners next year – which would equate to a ‘windfall’ of around €1.25 million.

The City Council began a 30-day public consultation process this week on the ‘Local Adjustment Factor’ – which permits local authorities to raise or cut household Local Property Tax (LPT) rates by a maximum of 15%.

A 15% increase in the basic rate would translate to around €33 extra per annum (64c per week) increase for the majority of city households, while a 1% adjustment would amount to €2.24 per annum (4c per week).

Management in the Council are already poring over figures ahead of next year’s Budget – which will see additional demands on financial resources from the likes of the bid to become European Capital of Culture 2020.

Everyday services such as street-cleaning are already under threat because of €15.5m in commercial rates arrears.

Edel McCormack, the Council’s Head of Finance said the consultation process allows members of the public to make submissions and proposals in relation to any potential rate adjustments.

She said that “ideally”, Council officials would like to see an increase in the rates, and it is their preference for there to be no reduction.

For more on this story, see this week’s Galway City Tribune