€21.3 million property tax windfall for Mayo authority

The Minister of State for Local Government and Planning, Alan Dillon, has announced the allocation of €696 million in Local Property Tax (LPT) for 2025 to local authorities - including €21.3 million for Mayo County Council.

This funding will support the crucial role councils play in delivering services and managing increasing demands.

Every local authority receives a minimum (‘baseline’) amount of funding from the LPT.

If a local authority’s LPT income is lower than its baseline, it is supplemented by Exchequer funding.

For 2025, the estimated LPT yield of €552 million will be supplemented by €144 million in equalisation support from the Exchequer.

The baseline funding for Mayo in 2025 is set at €21.3 million.

This includes an increase of €1.5 million following a review of the 2023 allocations.

The estimated LPT yield for Mayo is €9.4 million

This is the estimated total revenue from the LPT on residential properties in Mayo.

However, this is less than the baseline funding of €21.3 million, so the shortfall is covered by the government through its equalisation fund.

Mayo will receive over €11.9 million from the €144 million equalisation fund.

This results in a total LPT funding allocation of €21.3 million for Mayo in 2025, before any local variation of the base rate is applied.

Minister Dillon TD stated: “Local authorities play a vital role in delivering services to our citizens.

"Following a review of baseline funding by a working group, the government increased the LPT baseline by more than €75 million in 2024.

"These changes will continue into 2025, easing pressures on the sector.

"Following recent local elections, new councils face important decisions in the coming months regarding the level of local property tax in their areas, which will affect expenditure on local services.

“As the Minister responsible for Local Government, I recognise that local authorities are on the front line, providing important resources and amenities to their communities.

"I am pleased that the significant increases in LPT allocations for 2024 will continue into 2025. I know they will assist the sector in the key role it fulfils in delivering for local communities.

“It is important that all local authorities receive at least their baseline level of funding to ensure they can deliver adequate levels of service, as there are variances across the country in terms of LPT yield.

"The equalisation process is a key component in support this shortfall. It redistributes funds to local authorities with lower LPT yields, maintaining a fair and equitable system across the country.”