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Homeowners in the Dún Laoghaire-Rathdown area of Dublin face a 15 percent increase in local property tax bills after the authority warned of a “catastrophic” impact on frontline services next year.
At a meeting Monday night, councilors did not agree to a now-traditional 15 percent discount on local property tax bills, the maximum allowed by the government.
The result is that household bills in the area that includes some of the most expensive homes in the State valued at several million euros, will increase by 15 percent.
Councilors failed to agree to a motion to continue the 15 percent discount after a vigorous appeal by council executive director Philomena Poole. Ms Poole told councilors that the Covid-19 pandemic had had a “catastrophic” impact on finances.
He said that taxpayers would not be the only ones to endure financial suffering in the coming year and it was clear that services would actually be affected by the financial situation.
He told councilors that he had asked them in previous years not to vote through the 15 percent discount, but this year he said they faced exceptionally difficult circumstances without “protection.” He said the council was facing “disastrous cuts to frontline services.”
Ms. Poole asked council members to, in addition to eliminating the now-traditional 15 percent discount, to increase the tax rate by “plus 5 percent.” However, councilors did not vote on such an increase.
By effectively increasing local property taxes in Dún Laoghaire-Rathdown, councilors have ensured that those whose homes are worth between € 400,000 and € 450,000 will see their bills increase from € 650 a year to € 765.
At the higher end of the scale, homes with a value between € 950,000 and € 1 million will see their bill increase from € 1,491 to € 1,755.
The real value is calculated as 0.18% on the first million euros in value and 0.25% on the part of the value greater than 1 million euros.
The council meeting also saw the defeat of a People Before Profit motion calling for a meeting with the relevant Minister of Government to consider the crisis facing local authorities across the country.
“Now people are being asked to pay for Covid-19,” said PBP councilor Melisa Halpin. “The Government has said that austerity is not the answer to the impact of Covid on the economy, but here we have austerity imposed on the owners of their houses.”
He said that many people considered Dún Laoghaire-Rathdown the home of millionaires who could well afford such an increase. But he said there were many more small houses than large ones, and even in large ones people may be living alone on a pension and now face the loss of their home.
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