Homeowners in Co Cork face property tax hike, with average bill now €445
A Agreed The Larry 2 County Elected Figure Representatives File Hall Debate Monday Following Cummins On In On Picture: 5% Lengthy
Homeowners in Co Cork will see their Local Property Tax (LTP) rate rise by 2.5 percentage points next year, with average-priced homes now facing a bill of up to €445.
Cork County Council management had sought to increase the tax by an even larger amount, citing a €27.3m deficit in the 2025 budget, but elected representatives agreed on the 2.5% increase, following a lengthy debate in County Hall on Monday.
The council’s head of finance Jeremy Canty said construction materials inflation, rising energy prices, and increases in salaries are hitting council coffers.
He said further investment is needed in cyber security, local authority housing maintenance, upgrades of playgrounds and piers, plus the need to employ more outdoor staff.
The council also needs to purchase more land to build affordable housing schemes and to set up enterprise centres.
Mr Canty said local authorities now hold on to 100% of property taxes generated in their areas, and he warned that it would prove very difficult to balance the budget if they did not increase the income from the tax.
Both he and council chief executive Moira Murrell asked councillors to approve an increase of 7.5 percentage points for the next five years, moving it to the top rate of 15%.
A local authority can increase or decrease the property tax rate by up to 15% from the basic rate imposed by Revenue based on the value of the home. The current charge is 7.5 percentage points above the basic rate in Cork County.
The Mayor of County Cork Joe Carroll said he was not happy with the top rate being imposed for five years.
He proposed the council vote on a one-year increase, and said it should be 2.5 percentage points.
“A jump to 15% is a bit much," he said. "I’m proposing we go to 10% for this year alone and see what the chief executive's proposals are next year.”
Independent councillor Ger Curley made an alternative proposal. He said the property tax should remain at the current 7.5%, as house prices had risen by 9.1% in the past year, potentially driving up the base rate for many people.
Mr Curley and Independent councillor Peter O’Donoghue said central Government needs to provide the council with more money, with the latter pointing out that it does not have any excuse for not doing this after the €14bn Apple windfall.
Independent councillor Alan Coleman said: “It would be grossly unfair if we went the whole hog and raised it to 15% when we are well down the pecking order in terms of what we get from the Government compared to other counties. But we have to provide a certain level of service to the public, so I think 10% is fair and balanced.”
Sinn Féin councillor Eoghan Fahy said people are “pinned to their collars with the cost-of-living crisis” and cannot afford any further taxes.
Mr Carroll’s proposal to increase the current rate by 2.5 percentage points to 10% was carried by 42 votes to eight.
That means from next year people who own houses valued up to €200,000 will pay €99, while houses valued from €200,001 to €262,500 will have to pay €247.50 property tax.
Homes from €262,501 to €350,000 will be liable for €346.50. According to the Central Statistics Office, the average cost of a home in the county is €350,000.
A property tax of €445.50 will apply to homes in the €350,001 to €437,500 bracket, and those more valuable will be taxed at €544.50.