An East Clare Councillor insists balancing the local authority’s budget had to take priority ahead of a reduction in the rate of property tax for next year.
Homeowners in this county face the prospect of paying 15 percent above the standard rate of the tax for both 2023 and 2024.
Councillors in Clare and every other local authority have the power to adjust the property tax rate set by the Government at 15% below that rate, 15% above the rate or the standard rate itself.
It stood at the higher rate in this county for this year, and will remain at the higher rate in both 2023 and 2024 following a vote of elected representatives last evening.
The rate is worth around €1.4 million to the local authority’s coffers, with Council CEO Pat Dowling telling the meeting they are already ‘down income’ for next year before any rate was decided upon.
Just three Councillors were against retaining the higher rate, claiming it’s not an appropriate move in the context of the cost of living crisis.
Those in favour of the higher rate have pointed to a reduction of bands at central Government meaning a large number of those impacted will actually be paying less tax next year.
However, Shannon-based Independent Councillor Gerry Flynn, who called for the rate to be reduced, claims homeowners who are struggling with rising inflation are carrying the can.
A number of elected representatives have publicly voiced their concerns about the potential cutting of Council services if a hole in the budget was left from reducing the tax.
Any proposal to adopt the lower rate of property tax would have seen the Council making up a €2.7 million shortfall.
Maghera-based Fianna Fail Councillor Pat Hayes, who voted for the higher rate to be maintained, says the local authority’s in a challenging position.
Councillors are set to sign off on the full local authority budget for 2023 later in the autumn.
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