Local property tax to jump by 15 per cent in Westmeath

House owners across Westmeath will face a 15% hike in the basic rate of local property tax for each of the next five years.

The decision to increase the rate was passed by 11 votes to six at a meeting of Westmeath County Council on Monday.

Members were told that the increase will be less than €2 a month for most households and the monies will be ringfenced for traffic calming, public lighting, improvements to the homes of the elderly, recreational and community facilities and events.

Councillors have the power to vary the basic rate of local property tax in their area by 15%, upwards or downwards. The basic rate plus 15% will now be in place in Westmeath for 2025 to 2029 inclusive.

Chief Executive Barry Kehoe assured the members the increase would be ring-fenced for specific initiatives. He said local authority tenants do not pay local property tax and the increase will be less than €2 per month for most people, but it will give the council a stronger budget and enable them to provide better service.

In its report to members the council said demand for current services is growing and it had significant loan repayment and capital provision commitments "arising from past and ongoing investment in infrastructure throughout the county".

Cllr Kevin “Boxer” Moran said the timing was wrong with the Taoiseach and Tánaiste both talking about the cost-of-living crisis. “The State wants to announce a giveaway budget and we want to take it back,” he said. “Postpone it for two or three years, until we come out of this turmoil, give people time,” he implored.

Cllr Moran seconded a proposal from Mullingar Independent Cllr Michael Dollard that they “leave it as it is”. Cllr Dollard said he deals with marginalised people daily and warned “it won’t go down well with them”.

Fianna Fáil Cllr Vinny McCormack proposed the increase as a means of funding traffic calming measures and public lighting in towns and villages, speeding up improvements to the homes of the elderly, and ensuring that facilities such as the Mullingar Regional Sports Centre go ahead, and library and other recreational services are enhanced.

“If I can get a firm commitment that these issues will be a priority, I will be happy to go with the 15% increase,” he said.

He was seconded by his Fianna Fáil party colleague Cllr Niall Gaffney who felt the additional monies would be of major benefit to every community.

Labour’s Cllr Denis Leonard said he could not support the increase because there was no commitment to spending it in rural areas.

Sinn Féin Cllr David Jones also felt rural areas were not getting their fair share – Mullingar got €20,000 for Christmas lights last year, Delvin got €500, he remarked. “Until I see the benefits in rural Ireland, I won’t be supporting an increase in LPT,” he declared.

Michael Hand, director of finance, said the council raises about €6.9m annually in LPT and this is brought up to €12.7m with equalisation funding from the exchequer. The 15% increase would bring another €1.03m a year into the council’s coffers.

For almost half the households paying LPT, the increase will be €14 a year with other bands increasing by €34, €47, and €61 a year respectively.

It’s understood some 36,000 properties are registered for Local Property Tax in Westmeath.

Those who voted in favour of the increase were Aengus O’Rourke, Andrew Duncan, Aoife Davitt, Emily Wallace, Frankie Keena, John Dolan, Liam McDaniel (chairman), Niall Gaffney, Tom Farrell, Vinny McCormack and Bill Collentine.

Those who voted against the increase were David Jones, Denis Leonard, Johnnie Penrose, Julie McCourt, Kevin “Boxer” Moran and Michael Dollard.