At a recent meeting of the Donegal County Council, members debated the future of the Local Property Tax (LPT) rate, which has been set at 15% above the baseline since 2020.
The council faced three proposals: to maintain the current 15% increase, reduce it by 15%, or return it to the baseline.
The first proposal, put forward by Cllr Jimmy Kavanagh, was to retain the 15% increase for another five years, maintaining the same rate that has been in place for the past five years.
After deliberation, the vote resulted in 17 in favour, 14 against, and 3 abstentions. The motion passed, meaning that the 15% increase will remain in place for the coming years.
A second proposal, introduced by Cllr Micheal Cholm Mac Giolla Easpaig and seconded by Cllr Jimmy Brogan, called for a 15% reduction in the baseline LPT.
However, this proposal faced significant opposition, with only 2 votes in favour, 17 against, and 12 abstentions. The motion failed.
Finally, the third proposal, made by Cllr McBride and seconded by Cllr Meehan, suggested returning the LPT rate to the baseline level. This too was defeated, with 13 votes in favour, 17 against, and 2 abstentions.
The council’s decision to retain the 15% increase comes in the context of rising financial pressures and the need to maintain funding for local services, as previously highlighted by Finance Director Richard Gibson, who emphasised that reducing or removing the increase would create a €1.4 million gap in the council’s budget for the coming year.
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