Councillors could lose power on property tax

COUNCILLORS could lose the power to reduce local property tax (LPT) under a review of the system.

The LPT is being reviewed by the Department of Finance, amid fears homeowners will be subject to massive hikes unless the system is changed before a planned revaluation in 2019.

Councillors currently have the power to decrease or increase the LPT in their area by up to 15pc.

Council management pleas not to decrease the LPT have been ignored by local representatives in recent years.

Department of Local Government secretary general John McCarthy was asked by Fianna Fáil TD Shane Cassells if removing councillors’ power to decrease the tax is being considered as part of the review.

Mr McCarthy said the previous 2015 Thornhill study of the LPT suggested that councillors only have the power to increase the tax. He said this was among measures Finance Minister Paschal Donohoe had indicated should be considered in the fresh review.

At the Public Accounts Committee, Social Democrats TD Catherine Murphy raised concern over the system where 20pc of the LPT income from counties with high receipts gets redistributed to other local authorities. She said counties with growing populations were being disadvantaged. Mr McCarthy said there was also a review of how the LPT was allocated.