Mr. Martin Lydon, Director of Services presented the Chief Executives Report on the Local Property Tax Variation for 2022 to the members for consideration:

The Finance (Local Property Tax) (Amendment) Bill 2021 dated June 2021 revises the method homeowners calculate their LPT liabilities. Valuation bands are being widened and a number of currently exempted/excluded properties are being brought into the LPT system.

This approach differs from previous years given that a revaluation of LPT is expected to take place later this year, which will lead to changes in both the overall LPT yield and to the yield in each local authority area. When detailed information on the 2022 yield is available, the matter will be reviewed. The date for the revised revaluation is the 1^st November 2021. Homeowners will have to pay their 2022 liability based on the revised revaluation of their property.

2021 figures have indicated an estimated breakeven position being achieved in the current financial year. This breakeven position is being achieved despite additional costs in relation to Covid 19 and reduced income from rates. The losses in relation to income and additional costs have been offset by a detailed analysis of budget headings and redistribution of funds. The LPT at 2020 levels (€10.2m + 15% LAF of 609K) has contributed to achieving a forecasted breakeven position for 2021. 

The budgetary position for 2022 currently shows a breakeven position. This breakeven position assumes that the LPT will remain at 2021 levels.

The impact of the new revaluations from 1 November 2021 will affect the amount homeowners will pay in 2022.The effect of the widening bands and the inclusion of currently exempted properties is impossible to predict at this stage but could result in a lower LPT collection in Roscommon. The Department have indicated that local authorities requiring equalization will receive funding up to the baseline in 2022 – in Roscommon’s case €10.2m. Local authorities that increase the basic rate of LPT shall retain 100% of the resultant income – in Roscommon’s case +15% is €609k. The full impact of the widening bands/exempted properties will only be fully known for the 2023 budget.  

The report sets out the financial position of the Council as required by regulations.

The Department has indicated that Roscommon’s base line funding from the Local Property Tax Fund for 2022 is to be €10.2m, the same amount for each year from 2016 to 2021. This allocation includes €6.9m from the central Equalisation Fund, of which Roscommon is a net beneficiary.

If a decision is taken to vary the LPT basic rate upwards (by up to 15%) for the year 2022, 100% of the resultant additional income will be retained while if a resolution is passed to vary the LPT basic rate downwards (by up to 15%), the resultant loss in LPT income will not be covered by any additional funding from the Equalisation Fund.

The value of each % increase or decrease in variation of LPT is equal to + or - €40.6k.  An increase/decrease in LPT of 15% would correspond to increased/reduced income of €609k with an increase/decrease of 10% corresponding to increased/reduced income of €406k while an increase/decrease in LPT of 5% would correspond to increased/reduced income of €203k.

Following public consultation two submissions were received as follows:

1)      A general reduction should be contemplated due to the fact that households are currently struggling to pay their LPT.

2)      The maximum reduction in LPT should be considered as there are a number of additional taxes already facing households.

The Chief Executive notes that Roscommon County Council is a net beneficiary of €6.9M from the Equalisation Fund as the level of funding yielded from LPT locally is not adequate to cover the current cost of services provided. Despite the on-going pressures on budgets, the Council continues to play an important role in the local economy and community and is committed to achieving value for money and efficiencies in the delivery of services.

He has consulted with the Corporate Policy Group, outlining the need to maintain LPT at 2021 levels to meet customer expectations and provide improved infrastructure, using a balanced distribution of investment and projects throughout our towns and villages.

The following details the proposed expenditure from the 15% variation income:

The impact on LPT from the revised valuation date of 1 November 2021 cannot be quantified at this stage but it may well result in a lower LPT amount being collected locally in 2022. This will not affect the 2022 budget but will impact on the 2023 budget.

To deliver the plans and objectives for 2022, the Chief Executive has recommended that the LPT be maintained at this year’s levels.

The Cathaoirleach thanked Mr. Lydon for the presentation and informed the meeting that the CPG is also recommending that the 15% increase be maintained for 2022.  All of the ongoing works in the county, it is vital to have matched funding to continue and complete projects.

Cllr. Leyden proposed that the rate would be maintained at the 2021 level and this was seconded by Cllr. Crosby.

Cllr. Ward spoke on behalf of the independent group:

• Would like that the MD funding be increased to €100k per area
• Increase in Tidy towns funding and towns and villages in general
• Acknowledge the need for match funding and the group will support the proposal to maintain the rate as 2021.

Other members contributed as follows:

• Has there been a survey on the number of new houses that will be liable for LPT?
• Expenditure on verge cutting and tidy towns must be maintained.
• All areas should benefit from the LPT
• The Government should give a commitment to a 5-year plan for LPT to enable Local Authorities to plan funding commitments.

On the PROPOSAL of Cllr Leyden

             SECONDED by Cllr. Crosby

It was AGREED that when letters of offer are issued for successful projects under the Municipal District Funding Scheme, it is notified that the funding is made available through the Local Property Tax.

On the PROPOSAL of Cllr Leyden

             SECONDED by Cllr. Crosby

It was AGREED the Local Property Tax basic rate be increased by 15% for 2022 as provided under Section 20 of the Finance (Local Property Tax) Act 2012 as amended by Section 5 of the Finance Act (Local Property Tax) Act 2013.