What is Local Property Tax (LPT)?
Local Property Tax (LPT) is an annual tax charged on all residential properties in the State and came into effect in 2013. The LPT is collected by the Revenue Commissioners.
What is the Local Adjustment Factor?
A local authority may vary the basic rate of the LPT within its own area by a maximum of 15%. This means that Waterford City and County Council can either increase or decrease the rate of LPT in 2020 by 15% of the basic rate. For 2020, the Council decided to increase the rate of LPT by 2.5% of the basic rate. The rate for 2021 will revert to the basic rate unless Council decides to vary this rate.
What does this mean for the average household?
The table below gives an indication of the rate of Local Property Tax for an average household in Waterford following a 15% decrease or increase on the basic rate.
|LPT Valuation Band||Basic Rate||-15%||+15%
|€0 – 100,000||€90||€76.50||€103.50|
|€100,001 – 150,000||€225||€191.25||€258.75|
|€150,001 – 200,000||€315||€267.75||€362.25|
|€200,001 – 250,000||€405||€344.25||€465.75|
For example, if your house is valued under €100,000 and the basis rate is not varied, you will pay €90 Local Property Tax in 2021. If the Local Property Tax rate is increased by 15% you will pay €103.50 Local Property Tax in 2021 and if this rate is decreased by 15%, you will pay €76.50 Local Property Tax in 2021.
What will the income adjustment for the Council be?
The Local Property Tax raises approx. €9.3 Million in Waterford City and County. Accordingly an adjustment of +/- 15% equates to an income adjustment of circa €1.4 Million.
Does the Council have to vary the rate of LPT for 2021?
No, the Council could, having considered a range of issues, decide to leave the LPT at the basic rate for 2021. The rate in 2020 was increased by 2.5% of the basic rate of Local Property Tax.
What is the money collected under the Local Property Tax used for in the Council?
This money contributes towards the cost of providing a range of local Council services including libraries, public lighting, road maintenance, housing services, fire services, supporting community initiatives, dealing with illegal dumping and littering, beach management and tourism development initiatives.
What will an adjustment in the Local Property Tax mean in terms of Council services?
If the rate is reduced and if funding is not available to replace this reduction, then a reduced level of income available to the Council will limit the range and extent of services and supports that can be provided in 2021.
If the rate is increased, then an increased level of income available to the Council will increase the capacity to deliver services and supports in 2021.
When will the Council make a decision on varying the rate of Local Property Tax in Waterford?
This decision will be made at a Council meeting to be held in late September 2020.
Can I give my views and opinions on any proposal to increase or decrease the rate of Local Property Tax?
Yes, Waterford City and County Council would like to hear your views and opinions on any proposal to increase or decrease the rate of Local Property Tax in Waterford. We would like to hear your thoughts on the potential effects of varying the basic rate of the Local Property Tax on households, individuals, businesses and on Council services.
To make your submission you can write to:
Local Property Tax Consultation,
Waterford City and County Council,
All submissions must be received by 22nd August 2020. There is no prescribed format for a submission.
What will the Council do with the submissions that are received?
The elected members of Waterford City and County Council will consider the feedback received from this public consultation as part of the decision-making process. The Chief Executive will provide a summary of the written submissions received in a report to the elected members.
In making their decision on whether or not to vary the rate, the elected members will consider the following:
- Estimated Income and Expenditure for the Council in 2021
- Financial Position of Waterford City and County Council at present
- Estimated Financial effect of the varied rate in 2021
- Feedback from the Public Consultation