Galway City Councillors formally agreed a 15% adjustment in the Local Property Tax (LPT) earlier this year, which will fund an increased investment of €7 million in public services over the next five years.
Marking the first LPT increase in Galway since the introduction of the tax in July 2013, the additional €7 million generated over the 5-year term will be invested across the city in:
The adjustment will cost the majority of households, which are in the lowest three bands of property values, between 26 cents and 91 cents to their LPT payment per week.
“Since the introduction of Local Property Tax in 2013, Galway City Council has not taken any variation of the local adjustment factor. In real terms, this means revenue has effectively decreased by over 20% in this period,” explained Leonard Cleary, Chief Executive of Galway City Council.
“At the same time, Galway is the fastest growing city in Ireland over the past 50 years, with an expected growth by 40,000 by 2040”.
Welcoming the decision of the Elected Members, Mr. Cleary commented, “The additional revenue generated by the LPT adjustment will enable Galway City Council to further enhance its delivery of the vital services that sustain and support our city. The people of Galway will see this investment on the ground in their communities, in improved footpaths, well-maintained community facilities, more estates being Taken in Charge, and arts and tourism events”.
Local authorities are funded through a combination of commercial rates, charges, LPT and State funding.
Galway City Council is one of the last local authorities to propose an adjustment in LPT for reinvestment in the local area.
Under the Finance Act, local authorities have the authority to vary the base rate of Local Property Tax by a maximum of +/- 15%, subject to the agreement of the Elected Members.
Any decision to vary the local rate must be by resolution of the members of Galway City Council and notified to Revenue and the Minister for Housing, Local Government and Heritage by 15 October 2024.
