Variation of Local Property Tax – Notice of consideration of setting a local adjustment factor (increase/decrease or leave unaltered Local Property Tax rate)
Overview
The Finance (Local Property Tax) Act 2012 (as amended), makes specific provision that elected members of a local authority may pass a formal resolution to vary the basic rate of the Local Property Tax for their administrative area by a percentage known as the local adjustment factor.
This means that Kildare County Council can increase or decrease the basic rate of the Local Property Tax within the County by a maximum of +/-15% or leave it unaltered.
Why We Are Consulting
The Council will meet in September 2022 to consider the setting of a local adjustment factor. Members must decide whether to retain the base rate of LPT or to either increase or decrease the rate of LPT.
The options available to the elected members are
(1) Retain the basic rate of the value of the property – i.e. no variation.
(2) Decrease the rate between 1-15% below the basic rate of 0.1029% of the value of the property based on the valuation bands (see below).
(3) Increase the rate between 1-15% above the basic rate of 0.1029% of the value of the property of the valuation bands (see below).
The Council welcomes submissions from the public on this matter specifically covering the potential effects of retaining the existing variation, or applying an alternative or no variation, on businesses, individuals and on local authority services.
Band Structure:
| Valuation band number | Valuation band € | LPT charge basic rate € |
|---|---|---|
| 1 | 0 – 200,000 | 90 |
| 2 | 200,001 – 262,500 | 225 |
| 3 | 262,501 – 350,000 | 315 |
| 4 | 350,001 – 437,500 | 405 |
| 5 | 437,501 – 525,000 | 495 |
| 6 | 525,001 – 612,500 | 585 |
| 7 | 612,501 – 700,000 | 675 |
| 8 | 700,001 – 787,500 | 765 |
| 9 | 787,501 – 875,000 | 855 |
| 10 | 875,001 – 962,500 | 945 |
| 11 | 962,501 – 1,050,000 | 1,035 |
| 12 | 1,050,001 – 1,137,500 | 1,189 |
| 13 | 1,137,501 – 1,225,000 | 1,408 |
| 14 | 1,225,001 – 1,312,500 | 1,627 |
| 15 | 1,312,501 – 1,400,000 | 1,846 |
| 16 | 1,400,001 – 1,487,500 | 2,064 |
| 17 | 1,487,501 – 1,575,000 | 2,283 |
| 18 | 1,575,001 – 1,662,500 |
2,502 |
| 19 | 1,662,501 – 1,750,000 | 2,721 |
| 1,750,001+ | 2,830+ |
| Rate = 0.1029 |