Local Property Tax vote divides Councillors

Dublin City Councillors have voted to keep the local property tax unchanged for 2024. 

A vote at this month’s meeting of Dublin City Council meant that the rate will remain unchanged following an esoteric alliance of Fianna Fáil, Fine Gael, Sinn Féin and People Before Profit councillors opting to keep the rate as is.

A last-minute motion put forward by Labour, Green and Social Democrat Councillors that would have seen the rate increase was defeated.

The motion called for €14.5 million in funding to be designated as €12 million for works to improve public streets and €2.5 million to the Area Discretionary Fund, which they said would necessitate raising the tax.

The Local Property Tax, which is based on the value of a property, has a base rate that can be adjusted by plus or minus 15 per cent depending on each local authority, with Dublin City Council usually opting to reduce it by the maximum amount that is permissible.

With local elections taking place in June next year, the vote has found itself under extra scrutiny.

The vote has been greeted with a myriad of reactions across the political spectrum, with Green Councillor Oisín O’Connor asking “why are Sinn Féin and PBP supporting Fine Gael & Fianna Fáil in giving hundreds of thousands in tax breaks to pension fund landlords by cutting local property tax? This saves the owner of the average home around €4 a month.”

O’Connor’s party colleague Michael Pidgeon said that the property tax remaining unchanged means that the budget will not allow for the hiring of 100 extra staff that would clean Dublin’s streets.

Calling the alliance of parties that voted against the motion “unholy,” he posted on Twitter “where is the ambition for the city and our services?”

Labour TD Aodhán Ó Ríordáin tweeted “so your streets won’t be cleaned as regularly next year but every owner of a million Euro house gets €375 back. That’s SF/FF/FG/PBP councillor logic as they vote to cut the local property tax again. Residents need services – not populist grandstanding.”

The Workers’ Party said “this tax cut means the council will hold the purse string even tighter when they’re asked to provide this in future. Perhaps it is to be expected that Fine Gael and Fianna Fáil would vote against public services in favour of a tax break, but it is strange to see this coming from Sinn Féin and People Before Profit, two parties of the left.”

“While it is understandable that some councillors would have concerns about raising taxes during a cost-of-living crisis, the 15% reduction voted for by councillors will save a mere €14 for the year for those in the lowest Property Value band, while somebody with a house worth €500k will only save €75. Is that worth having less frequent street cleaning and less funding for local areas?”

On the other side of the argument, Fianna Fáil Councillor Tom Brabazon told the Irish Times “this year, with the cost of living increases, and the cost of heating homes adding to the burden of families, increasing the rate isn’t the thing to do.”

People Before Profit Councillor Hazel De Nortúin said “there is nothing worse than the desperation of Greens, Labour and Social Democrat Councillors saying “but it’s only €5 euro a month!” when discussing the local property tax.”

“Anything in isolation seems minor. The Local Property Tax should never, and will never save the city. Your parties destroyed that idea a long time ago,” she remarked.

Sinn Féin Councillor Natalie Tracey said she would like to see “the lowest tax and the highest return for the people, not for the Government.”

Independent Councillor Cieran Perry said that the tax was not “progressive” and questioned if Dublin City Council could fund their operations with their existing funding.

“The local property tax is a tax on the family home, it isn’t progressive because it doesn’t take into account the ability to pay and places a disproportionate burden on households with lower incomes.”

“Maybe if Government hadn’t stolen the majority of the local property tax we wouldn’t have a funding problem,” he remarked.