The rate of Local Property Tax in Kerry will remain unchanged in Kerry next year.
This comes after councillors voted in favour of approving a 10% increase in the base rate of the LPT for the next three years.
Under legislation, councillors have the power annually to vary the base LPT rate for the following year by +/-15% or leave the rate unchanged.
Kerry County Council CEO Martin O’Donoghue had asked councillors to consider a 15% increase for 2025 to 2029.
However, councillors put forward alternative proposals.
CEO Martin O’Donoghue said there are a number of projects at different stages of development in Kerry with an estimated total current value of €70 million, and an own resource requirement, or match funding amount, of €12.5 million.
He told the meeting that Government has confirmed that no additional funding will be available to the council to offset any reduction to the LPT rate.
Fianna Fáil councillor Norma Moriarty proposed the rate be increased by 10% for the next three years; which would see it remain at this year’s level. The meeting heard this would result in additional income for the council of €1.3 million next year, which would be maintaining this year’s levels.
This proposal also saw an additional €11,000 going towards a councillor’s allocation to show the public where the LPT money is being spent locally; many councillors claimed the public weren’t aware where this money was being spent. Cllr Moriarty stated the LPT was well spent in this county.
CEO Martin O’Donoghue gave a commitment for this increase to the councillor's allocation. This increase would bring it up to €40,000.
Sinn Féin's Deirdre Ferris proposed a reduction of 15% below the base rate, stating the tax is unjust and unfair, especially when so many families are struggling with the cost of living. The council heard this would result in a €3.4 million reduction to the council's income next year. The Sinn Féin proposal was defeated – six voted for and 26 against.
Meanwhile, Kerry independent Alliance Cllr John O'Donoghue proposed the base rate not be varied and be kept at 0%. He said an increase of 15% would be tone deaf given that people are struggling with the cost of living.
This proposal would have resulted in a €1.3 million reduction to the council's income next year. Cllr O'Donoghue's proposal was also defeated, with 11 voting for and 21 against.
In a lengthy discussion, some councillors voiced their opposition to the LPT, while others acknowledged it was vital for match funding to progress projects.
A number of councillors were critical of central government for not providing the necessary funding to ensure vital projects could go ahead.
The Apple tax money and the amount of money in Government coffers was referenced throughout the discussion, as was the struggles people are facing due to the cost of living.
Cllr Moriarty’s proposal passed by 19 votes to 13, meaning the base rate of LPT will remain at 10% in Kerry for the next three years.
14 submissions on the Local Property Tax were received by Kerry County Council; seven requested a decrease in the rate, two stated they didn’t want an increase in the LPT rate, one requested it be abolished or decreased, another called for the LPT to be abolished and one didn’t comment specifically on the rate of the LPT.
