Local Property Tax – Setting the Local Adjustment Factor

Local Property Tax – Setting the Local Adjustment Factor.

The Local Property Tax (LPT) is an annual self-assessed tax charged on all residential properties in the State. The LPT is administered and collected by the Revenue Commissioners.

A local authority may resolve to vary the basic rate of the Local Property Tax within its functional area by a maximum of +/-15%. The local adjustment factor is the % specified in a resolution by the Council by which the basic rate of local property tax should stand varied. This means that Kerry County Council can either increase or decrease the rate of LPT in CountyKerry by up to 15% of the 2017 rate.

Kerry County Council would like to hear your views and opinions in relation to this and how any adjustment to the rate may affect you, your household, your business and your local Council services.

Below you will find the Statutory Notice of Consideration of Setting a Local Adjustment Factor along with a set of Frequently Asked Questions to provide you with more information on the setting of the Local Adjustment Factor and the public consultation process.

Frequently Asked Questions

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 Local Property Tax within its own area by a maximum of 15%.  This means that Kerry County Council can either increase or decrease the rate of Local Property Tax in CountyKerry in 2018 by up to 15% of the 2017 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 Kerry following a 15% decrease or increase on the 2017 rate. 

 

LPT Valuation Band

2017 LPT Tax

-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

€250,001 - 300,000

€495

€420.75

€569.25

For example, if your house is valued under €100,000, you will have paid €90 Local Property Tax in 2017.  

If the Local Property Tax rate is increased by 15% you will pay €103.50 Local Property Tax in 2018 and if this rate is decreased by 15%, you will pay €76.50 Local Property Tax in 2018.

 

Does the Council have to vary the rate of LPT for 2018?

No, the Council could, having considered a range of issues, decide to leave the LPT at the same rate as this year.

 

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, recreational facilities, planning services, pollution control, dealing with illegal dumping and littering, beach management and tourism development initiatives etc.

 

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 2018.

 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 2018.

 

When will the Council make a decision on varying the rate of Local Property Tax in Kerry?

This decision will be made at a Council meeting to be held in September 2017.

 

Can I give my views and opinions on any proposal to increase or decrease the rate of Local Property Tax?

Yes, Kerry County Council would like to hear your views and opinions on any proposal to increase or decrease the rate of Local Property Tax in Kerry.  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.

 

How do I make my submission?

Submissions must be made in writing and can be sent to:

 

Finance Department,

Kerry County Council,

Aras An Chontae,

Tralee,

Co. Kerry.  

 or emailed to : lptcon@kerrycoco.ie

 Submissions must be received by 5.00 p.m. on 29 August 2017.  There is no prescribed format for a submission.

 

What will the Council do with the submissions that are received?

The elected members of Kerry 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 2018
  • Financial Position of Kerry County Council at present
  • Estimated Financial effect of the varied rate in 2018
  • Feedback from the Public Consultation

 The Council must notify the Revenue Commissioners and the Department of the Environment, Community and Local Government by the 30th September of its decision. Within 14 days of the passing of a resolution by the Elected Members to vary the Local Property Tax a notice must be placed on the Council’s website and in one newspaper circulating in the Council’s administrative area. 

 

 

NOTICE OF CONSIDERATION OF SETTING

A LOCAL ADJUSTMENT FACTOR

 

The Finance (Local Property Tax) Act, 2012 (as amended), makes specific provision that elected members of a local authority may pass a formal resolution to vary the basic rate of the Local Property Tax for their administrative area by a percentage known as the local adjustment factor.  At the meeting set by Kerry County Council to consider this matter, the members may set a local adjustment factor within the range of +/-15% of the basic rate, or may decide not to adjust the basic rate.

 

Kerry County Council will meet in September 2017 to consider the setting of a local adjustment factor.
Kerry County Council welcomes written submissions from the public on this matter specifically covering the potential effects of varying the basic rate of the Local Property Tax on businesses, individuals and on local authority services.

Submissions must be received by 5.00 p.m. on 29 August 2017 and be sent to:

Finance Department, Kerry County Council, Áras an Chontae, Tralee, Co. Kerry

Or emailed to:  lptcon@kerrycoco.ie

 

Signed: Moira Murrell         

              Chief Executive

Dated:  27 July 2017                       

Kerry County Council, Co. Buildings, Rathass, Tralee

Phone: (066) 718 3500     Email: info@kerrycoco.ie