Property tax to remain same in cavan for 2016

Cavan County Council has voted to maintain the Local Property Tax (LPT) rate in the county next year. The decision was taken despite consideration given to an 11th-hour submission by Sinn Féin’s Eugene Greenan who proposed the authority begin charging the government for operating the motor tax office, the outcome of which would lead to off-setting the estimated €650,000 cost of reducing the LPT rate by 15% in Co Cavan in 2016.

“In my opinion it does not make any sense as to why we must foot this cost anymore. If the Government were to allocate this function to another entity such as An Post, then they would have to pay them a fee for providing the service. The Sinn Féin Group believe that we should request a 100% subsidy from the government for the cost of providing the Motor Tax service. This would provide us with €681,000 in extra funding,” - an excess - Cllr Greenan proposed.
He had earlier outlined his dismay that motor tax income, which once funded the Local Government Fund, is now being used to financially support Irish Water. “€450,000 is being diverted to Irish Water. Just to make myself clear, the money that was used to fund the local authorities is now going to Irish Water.
“Cavan County Council manages the Motor Tax function for the county. In the past we had a somewhat vested interest in this function. However, now none of that money benefits this local authority,” he said.
The councillors then sanctioned the executive proposal by the newly appointed Council CEO Tommy Ryan and head of finance Des Maguire to maintain the rate next year.
Fine Gael’s Paddy O’Reilly proposed the motion, seconded by Fianna Fáil’s John Paul Feeley.
So it was that then, with the latter elected member plumping for the council to request central government for more funding, that the vote was passed, 11 to nil in favour.
Three councillors - Fine Gael’s Peter McVitty and Sinn Féin’s Damien Brady, both of whom also missed last year’s LPT vote - were absent, as was Fianna Fáil’s Sean Smith.
Earlier, the specially convened meeting heard from both Mr Ryan and Mr Maguire of the “serious impact” that a reduced rate could have on services.
Mr Ryan outlined that the benefit to homeowners of a 15% reduction would result in just a €13.50 cut a year in the annual bill to almost half of householders in the county; or a €33.75 saving in the case of about 41% of homes.
“The County Council has a responsibility to oversee development in the county, communities, the economy and services,” Mr Ryan said, adding that the focus at the present time was on maintaining what had been achieved and building on that wherever possible.
Under the current system, councils retain 80% of the monies collected from the property tax, with the remaining 20% channelled into a Government-operated equalisation fund.
Cavan County Council is due to receive the same level of funding received in 2014 and 2015 from the fund, totalling €8,458,415.