Should Local Property Tax earnings stay in Wicklow? One TD thinks so
The Wicklow PeopleA Wicklow TD has called for a change in how the local property tax is collected.
Wicklow County Council voted to maintain the Local Property Tax (LPT) rate at the 2025 level for the year ahead, after voting for an upward variation of the basic rate by 6pc, despite calls for a reduction.
Local authorities have the power to vary the basic LPT rate on residential properties in their area, by increasing or decreasing the local adjustment factor by up to 15pc.
The rate in Wicklow has remained unchanged for the past four years.
Raising the issue in the Dail recently, Fine Gael Deputy Edward Timmins recognised the expected average increase of 5pc is below the inflation rate of 16.7 pc over the past four years.
However, he said more needs to be done to make it a more equitable tax.
“€3 million of the €23 million tax raised in Wicklow will not be kept locally next year. This is an improvement on the €5 million in 2025, but it needs to be eliminated.”
“I do not suggest it be taken from the other counties which receive more than what is collected, but that it ultimately comes from Exchequer funding.”
He believes two aspects of the system that need to be changed, the first being the baseline figure, which is used to deprive local authorities of the tax raised in their counties
“This is based on a complex formula with very low weighting given to population. Counties with half or less of the population of Wicklow with similar areas have similar baselines. This makes no sense and needs to be scrapped.”
His second suggestion focuses on the local property tax surplus calculation, the percentage is set to ensure the balance is calculated to reduce the amount a council can retain.
“It is an arbitrary percentage with no basis. Both complex formulae need to be scrapped to allow councils to retain all their property tax.” he added.
In response Finance Minister Paschal Donohoe said any changes could have significant consequences.
“if we were to move to a system where all of what a county raises is kept within the local authority, some local authorities would need additional support and intervention directly from the exchequer.”
“This would mean funding that we are currently using in local government would have to be moved into that use. I have tried through the two revaluations to make a difference to the issue.”
Deputy Timmins believes the legislation should be changed to eliminate the requirement to return to the base rate each year. Calling it a “positive development” that discretionary funding is allocated to the municipal district.
“This allows a greater say on spending locally. It is something I promoted when I was chairman of Wicklow County Council.”
“Spending in Ireland is too centralised and there is much benefit in spending being done by people close to the issues, namely, local councillors and local officials.”
“I ask that the amount of property tax allowed for the discretionary fund be increased.”
Minister Donohoe agreed to raise the issue with the Local Government Minister, Deputy James Browne, and his colleague, the junior minister, Deputy John Cummins, who is also involved in this issue.
“The decision in relation to the base rate must be taken each year when budget decisions are made. I pressed that issue because I am aware of the challenges there can be around making that decision.”
“I am afraid that on that issue, I have to give the Deputy a clear answer but not the one he wants.” he added.