EXPLAINER: Where does Limerick’s Local Property Tax go?

A VIEW was expressed in the Council chamber that Local Property Tax (LPT) is "unfair" and nobody can tell what it is actually for.

A VIEW was expressed in the Council chamber that Local Property Tax (LPT) is “unfair” and nobody can tell what it is actually for.

Making the comment, Sinn Féin councillor Sharon Benson asked Limerick City and County Council to make it clear going forward where the tax is actually spent. She also hit out at the Government for “abandoning” local authorities when it comes to adequate funding throughout the rise of inflation.

“The reality is that it goes into the big pot and nobody can say what it’s actually for. So people are never going to see where their money is spent because essentially we can’t narrow that down,” Cllr Benson hit out.

“People are not only struggling; they’re drowning,” she said.

“I understand that some people won’t believe that, but if you just go out and look around you, the signs are absolutely everywhere. The value of your home does not paint the picture of what’s happening underneath the roof,” she said.

Since 2015, local authorities can vary the basic LPT rate on residential properties in their administrative area. The basic rates of LPT are 0.18 per cent and 0.25 per cent. For 2027 onwards, these rates can be increased upwards by +25 per cent or decreased by up to -15 per cent. This is referred to as the local adjustment factor.

The introduction of the local adjustment factor means that residential properties of the same value in different local authority areas may pay different amounts of LPT, depending on whether the local authority has applied a local adjustment factor or not.

At the Council’s monthly plenary meeting, elected members opted to pass a LPT variation of 15 per cent above the base rate by 23 votes to seven. This decision will now support the continued delivery of a wide range of local services and community amenities across the city and county, and will form an important element of the Council’s 2027 budget planning process.

Local Property Tax has been deemed by the Council as a significant source of locally-retained funding, helping to support essential public services and infrastructure projects throughout Limerick.

Programmes funded by LPT in 2026 included maintenance of local and regional roads, street cleaning including investment in new plants, traffic calming measures, maintenance of parks, pitches and open spaces, tourism development and promotion, library service and fire service.

LPT funding also gives the Council the flexibility to respond to local priorities and invest in projects that enhance quality of life for residents across Limerick.

Before last week’s vote, the Mayor, in exercising his executive functions as part of the preparation of Budget 2027, agreed with the recommendations presented to the meeting by officials. He recommended to councillors that the LPT variation be set at 25 per cent above the base rate, an increase of under nine per cent.

The elected members subsequently voted to set the variation at 15 per cent above the base rate. This resulted in a loss of potential funding of €1.7million for regular essential services in Limerick in 2027.

“The Local Property Tax provides an important source of funding that helps us deliver the services, facilities, and improvements that communities across Limerick rely on every day,” Mayor John Moran said after the meeting.

“Central Government recently informed us that funding for local government in Limerick would be reducing in real terms for 2027, despite rising costs and very strong Exchequer returns at national level. I worry about the impact of that on vulnerable residents in Limerick who rely on our service,” he confessed.

Mayor Moran suggested that homeowners in Limerick would be prepared to agree to a modest rise of less than nine per cent in the LPT if the Council could guarantee to spend it on core services, especially for those in most need.

“No decision to raise taxes is easy, but in my opinion it was the lesser of two options. I was prepared to agree with the recommendation of the officials, who had studied the impact of this decision in detail.

“The elected members exercised their reserved function, and a majority voted instead for a 15 per cent variation. That is their right. We will now need to reflect that decision in the budget process as we work to deliver the best possible services and investment for communities across the city and county,” he explained.

Council Príomh Chomhairleoir, Cllr Tom Ruddle, was of the view that LPT funding supports a wide range of projects and services that make a real difference to people’s everyday lives.

“It helps ensure that we can continue to maintain and improve local amenities, strengthen communities and support balanced development across Limerick,” Cllr Ruddle insisted.

But not everyone could see the good in this cornerstone of the local authority’s annual budget planning, Fianna Fáil councillor Michael Collins claimed that people in rural West Limerick are getting “nothing” in return for their LPT.

“I have people in my district that have no public lights. They have no public footpath. Most of the year, their water is off through leakages. They have no power sometimes when the storms come. So they get absolutely nothing for LPT,” Cllr Collins declared.

The Newcastle West man’s party colleague in Limerick City North, Cllr Kieran O’Hanlon, maintained that this too was an issue in urban areas.

“If you look at the state of the Park Canal at the moment, what was once described as the jewel in the crown, it’s an absolute disgrace. I can tell you, the people that live in my area don’t see any results,” Cllr O’Hanlon fumed.

Fine Gael representative for the Adare-Ratkeale district, Cllr Adam Teskey said that potholes on the roads would suggest people in his area are not getting bang for their LPT buck.

“I think today is a is a bit of a wake-up call to be honest with you,” he told the Council executive.

Independent councillor Elena Secas urged the Council to put signs on completed projects around the city and county that have been funded by LPT. This, she said, would indicate to people where their hard-earned contribution is going.

“People are paying Local Property Tax and quite often we get questions about where it is spent. I’m asking that going forward, whenever we fund a project from the tax, we let people know by the way of putting up signs. We need to let people know where it is going,” Cllr Secas opined.

“People look around and they’re wondering why do they pay LPT when you know X road is not maintained or the trees are not maintained. So, we need to show people where the money is spent.”

There will be no change to the LPT rate for Limerick homeowners in 2027.