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Dublin councilors have again voted in favor of the maximum 15% reduction in local property tax, despite being warned of a deficit of 39 million euros next year.
Instead, the board’s management had asked for a 15% increase, which would mean an additional € 24 million to maintain services.
The council’s finance chief Kathy Quinn said the projected deficit of € 39 million stemmed from the Covid-19 pandemic, with increased spending on services such as ambulance and provision for the homeless, as well as a loss of income in rentals, parking and planning fees.
However, councilors voted 34-21 to apply the rate reduction and keep the tax at the same level as last year.
Councilors have the power to reduce or increase the rate by 15% and Dublin City Councilors have voted each year to apply the maximum reduction.
Many councilors at a meeting tonight complained about the compensation provision, which means that 20% of the LPT paid by Dubliners goes to other local authorities.
The tax was expected to raise a total of € 81.6 million, before the reduction, with € 16.3 million in compensation.
The 15% reduction was supported by amendments from Sinn Féin, Fianna Fáil, Fine Gael and The Independent Group.
Sinn Féin Cllr Daithi Doolan said his party would impose the reduction until it could be sent to the “dustbin of history.”
Fianna Fáil Cllr Deirdre Heney described the local property tax as unfair to Dubliners, who said they have to pay more due to higher house prices.
He noted that houses built since 2013 are exempt, representing a loss of 16.5 million euros for the city council.
Fine Gael’s Cllr James Geogheghan said that a 35% increase could not be accepted, which would result from imposing a 15% increase rather than a 15% reduction.
The Greens and the Labor Party wanted a 5% raise. Green Party member Michael Pidgeon asked how the council would fund fire, ambulance and homeless services next year.
Labor Cllr Dermot Lacey said a 5% increase would result in an additional 64 cents a week for a house worth 400,000 euros.
The Social Democrats wanted to apply the base rate, but those receiving pandemic payments would get a 15% reduction. Cllr Tara Deacy said the council faces a huge deficit.
South Dublin and Dun Laoghaire / Rathdown had already applied a 15% reduction, while Fingal voted for a 10% reduction.
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