Property tax to increase by 15% from January 2021

A rise of 15% in the tax would have only seen an increase of €1.13 a month in almost 98% of households in County Cavan.

Property taxes are set to increase by 15% for Cavan householders from January 2021.

Elected members on Cavan County Council have just voted in favour of varying the rate of Local Property Tax (LPT) applicable to Cavan residences upwards by 15%.

It is the first time that the tax has increased in the Breffni county since it was first introduced, despite numerous appeals by the council executive in recent years to increase the tax in order to fund vital services and infrastructural improvements in the county.

Independent Councillor Shane P. O'Reilly proposed the increase at a socially distanced meeting in the Cavan Sports and Leisure Centre - the first monthly meeting of the local authority since the summer recess. He was seconded by Independent Councillor Brendan Fay. There were no objections by any of the other 16 sitting county councillors of Fianna Fail, Fine Gael, Aontú, and Sinn Féin.

The approved increase will come as a relief to the council executive - given finances took a major hit during the recent lockdown. The projected budget shortfall for 2020 is estimated in the millions of euro.

Already CEO Tommy Ryan and his senior management team have held several meetings to discuss the fall out of the pandemic, and how it has affected operations within the local authority.

Last year Fianna Fáil members on the Council, backed by three others, blocked a proposal to rise property tax in County Cavan, in spite of strong recommendations from the executive that the increase was vital to sustain and improve key services and infrastructure.

A 15% increase had been sought at last year's September meeting, where Fine Gael councillors backed the executive proposal.

However, on that occasion, the seven elected Fianna Fáil councillors, backed by Independent councillor Brendan Fay from Belturbet; Cllr Sarah Reilly (Aontú) and Cllr Paddy McDonald (SF) voted against the proposal - which was ultimately defeated by 10 votes to seven.

It was said at the time that a rise of 15% in the tax would have only seen an increase of €1.13 a month in almost 98% of households in County Cavan.

By contrast, that increase would generate an additional €669,661 in revenue for the local authority.

The insight into the terrible impact the pandemic and subsequent lockdown has had on the Council’s revenues, in a “worst case scenario”, could cost the local authority in the region of €8.5 million in rates income alone.

The council has annual rates demands for 2020 to the tune of €16.5m, with opening arrears brought forward from 2019 of €3.5m.

Earlier this month the members elected to Monaghan Council voted in favour of increasing the level of LTP in their county; although neighbouring councils in Leitrim and Longford opted not to increase the tax for 2021.

More to follow...