Monaghan councillors refuse to increase Local Property Tax

A request by the Monaghan County Council executive for a 10% increase in the Local Property Tax rate to be levied in 2027 was rejected by the elected members at their monthly meeting on Monday.

Councillors instead unanimously voted in line with separate proposals advanced by SF and FG to retain a 15% LPT rate, which will mean no increase next year in the amounts paid by those liable for the tax.

Head of Finance Olga McConnon told the meeting that there had been no change in the amount paid by the homeowner in Monaghan for the past eight years. A change in legislation this year means that local authorities can increase the rate applicable for LPT from 15% to 25% and this was the executive’s recommendation for 2027, Ms McConnon stated.

She said that in 2026 the 15% variation meant that each of the county’s three Municipal Districts received €319,317 from the LPT revenue. If the Council agree to a 25% variation this year, the MDs will again receive €319,317, with the additional €369,317 generated being allocated to the Council’s revenue budget.

The Head of Finance said the revenue from the additional 10% is greatly needed by the Council to meet the increase in “uncontrollable costs”, the small level of increase anticipated in 2027 in income from commercial rates, and the fact that the funding received by the Council from central government is not increasing.

Cllr Seamus Treanor (Ind) thanked all the councillors for turning up for the LPT vote, claiming that when a similar vote was recently taken at Cavan County Council, some of the members “hid in the carpark” until the voting was over.

“I don’t think that’s any way for a councillor to behave,” Cllr Treanor continued. “You have good days and bad days being a councillor.”

The Independent said there is “no way” he would vote for the 25% rate, which he described as "outrageous".

“I have the fear that if we had the power to vary the LPT by 100% we would be asked to exercise that power,” stated Cllr Colm Carthy (SF), adding that he would be very uncomfortable in increasing the burden further on the people of County Monaghan.

Cllr Carthy moved what he described as a compromise proposal by the SF grouping: leaving the variation at 15% rather than adding the additional 10% burden.

Cllr Alan Johnston (FG) said there is a cost of living crisis, with many working families not earning enough to meet their bills. “The last thing people in our communities need is an LPT increase,” he stated.

“We need to be cognisant that people are struggling and we need to help families and give them breathing space. The FG councillors are of the view that we don’t want any increase in the LPT this year.”

Cllr Johnston’s stance was echoed by Cllr Sean Gilliland (FG), who welcomed “SF’s stepping up to the plate and accepting the benefit of the LPT”, which is the only discretionary finance MDs have to match-fund projects.

“We can’t ask hard-pressed families for an extra 10% because it is not there,” Cllr Gilliland stated.

Cllr Pat Treanor (SF) described his party’s proposal as a reasonable compromise. “The more you allow the government to withhold,” he said, “the more they are going to come back and get us to be the tax collector from the people of the county.”

He hit out at government party councillors for “jumping up and defending their Ministers no matter what finance they give us”.

“We need projects properly funded by the government through the taxes people are already paying,” he added.

Cllr Seán Conlon (SF) described the executive’s proposal as “a slippery slope”.

Responding to Cllr P Treanor’s jibe, Cllr P J O’Hanlon (FF) said: “I think people are mixing me up with someone else. I haven’t the energy to jump up and down three or four times.”

Cllr O’Hanlon said he has always criticised the government in relation to the lack of roads funding.

He too welcomed the SF stance, stating that its councillors have now “seen sense after 12 or 13 years of opposing the LPT and are now supporting the tax and agreeing to a 15% variation”.

He added: “I never thought I would see the day when SF would support a 15% variation and I want to commend them for that.”

Cllr O’Hanlon earlier told the meeting that he would support the 25% variation on condition that the additional revenue be spent on improving the county’s roads.

But he withdrew that proposal in light of the signalled disagreement by the members with the increase.

When the Cathaoirleach, Cllr Aidan Campbell (FG) asked for a vote on the proposals to retain the LPT variation at 15% for 2027, there was a unanimous show of hands indication of support.