a day ago
- Business
- Irish Independent
Galway City sees Local Property Tax surplus for another year
The Housing Department announced that an additional €42m will be added to the LPT 'baseline funding' next year. This will bring the allocation from €696m in 2025 to €744m in 2026.
Over the three years leading up to 2026, baseline funding has risen steadily, up 33% overall.
Local authorities receive a baseline funding amount to guide their budgeting. If an authority collects less LPT revenue than this baseline, it receives an additional allocation to equalise or given a 'boost'. Conversely, if it collects more than the baseline, the surplus must be directed toward roads, housing, and similar projects.
In 2025, Galway City is in a €5m surplus for local authority use. For 2026, a provisional €2m increase in LPT revenue is projected.
Local government and Planning Minister, John Cummins said: 'For the 10 surplus Local Authorities, they will see significant uplift which will assist them in delivering urban regeneration projects for the benefit of their growing communities.'
The Local Authority is 'essential' to the servicing of Galway city said Housing Minister James Browne and 'each of them will now see an increase in funding in line with their increased yield.'
While homeowners are expected to see a slight rise in their Local Property Tax bills, most will remain within their current valuation bands. It is noted that yield from this specific increase will also go to the local authority.
'Those who are paying local property taxes deserve to see their contribution at work in their local areas and today I have made changes to ensure more locally sourced revenue is spent where it comes from.'
County Galway is expected to be an authority that requires equalisation meaning the LPT will amount to less than the baseline set out, and funding will be provided to them.
