Council agrees to 3 percent reduction in Property Tax levy

3 percent reduction in Property Tax levy agreed


Anton McNulty

Households in Mayo will pay 3 percent less Property Tax next year, which will mean the majority of households will pay either €2.70 or €6.75 less in 2015.
In Mayo, 41 percent of properties have been valued in the lowest valuation band (€0 - 100,000), while 40 percent were valued in the second-lowest valuation band (€100,001 - €150,000). Last year, Property Tax was charged at a rate of 0.18 percent, which translates into €90 and €225 per year, respectively, for those two groups.
In 2015, the two groups will pay €87.30 and €218.25, respectively.
The cut in the controversial Property Tax was passed despite calls for the current rate to be retained from the executive of Mayo County Council, whose budget for next year has been reduced by €6.4 million.
The proposal to reduce the tax by 3 percent was made by Fianna FΡil councillor Al McDonnell and supported by Indpendent councillor Michael Kilcoyne with support from a number of other Independents.
Independent councillor Frank Durcan proposed reducing the rate by 15 percent – the maximum allowed – and was supported by the three Sinn Féin councillors and Independent Séamus Weir. The Fine Gael councillors did not make any recommendations to the Property Tax rate but opposed Cllr Durcan’s 15 percent proposal and the 3 percent cut was passed.
Director of Finances of Mayo County Council, Peter Duggan explained that the Council was facing a deficit of €6.4 million in their annual budget and that the cost of any reduction in Property Tax would have to be found within the Council’s own resources.
He said a 1 percent variation would mean a €107,000 loss or gain to the Council’s coffers, while a 15 percent variation would mean a €1.6 million loss or gain.
Cllr McDonnell said the Property Tax had imposed ‘significant hardship’ on households in Mayo and said that while canvassing before the local elections, he met a woman who had to sell her dishwasher to pay the tax.
“This is a difficult choice and will have a serious constraint on us financially if there is a reduction in the Property Tax. But there is no scope out there to pay it. We propose a reduction of 3 percent in the Local Property Tax for this year, and hopefully in a year we will do the same [again],” he said.
Fine Gael councillor Jarlath Munnelly said the Property Tax was broadening the tax base and asked whether Fianna FΡil or Sinn Féin would abolish it if they were in power.
Cllr Gerry Murray of Sinn Féin said they would abolish the tax, as it was introduced to take the pressure off the central exchequer to pay off the €64 billion bank debt.
Following the passing of the vote, Mr Hynes said the Council would now have a larger deficit of €6.72 million to make make up before their 2015 budget is announced.