Councillor Patsy O'Brien

Mayo councillor seeks property tax review so rural areas get fairer share

A Mayo councillor who opposed a Local Property Tax (LPT) increase has called for a fairer distribution of funding for rural parts of the county.

Independent Councillor Patsy O’Brien voiced strong opposition to the recent decision by Mayo County Council to increase LPT by 10%, and is calling on government to prioritise a fairer and more equitable funding model that protects rural communities.

“I voted against this increase because rural homeowners are simply not receiving basic public services in return for their LPT payments,” Councillor O’Brien explained following the council meeting. “There are no public footpaths, no street lighting, and no sewage systems in many rural areas.”

LPT in Mayo has been at 10% since 2020 and the continuation of this for 2026 was approved recently, with support from Fianna Fáil and Fine Gael councillors.

Councillor O’Brien and other members of the independent grouping asked that LPT be returned to its base rate, minus the 10%.

Said Councillor O'Brien: “I have consistently opposed any rise in the LPT. It hits rural areas hardest - areas that already feel neglected when it comes to public investment. Instead of increasing the tax burden, we should be looking at how national funding mechanisms like the Equalisation Fund can be used more effectively to ensure fairness.”

The Equalisation Fund is a central feature of the national Local Property Tax system. It is designed to support counties with lower property tax bases by redistributing funds from wealthier areas. The aim is to ensure all local authorities have a minimum level of core funding to provide essential services.

Under the revised model introduced in 2023, local authorities now retain 100% of the LPT collected in their area, while the Exchequer fully funds the Equalisation Fund to cover the shortfall for counties with lower yields.

However, Councillor O’Brien argues that this system is not working as intended.

“Some local authorities, particularly in Dublin, are generating far more LPT revenue than they need, and yet those funds are sitting in their accounts or being used for non-essential projects,” he said. “Meanwhile, counties like Mayo are struggling to fund basic infrastructure in rural communities.

“That’s not equitable, and it’s not what the Equalisation Fund was supposed to be about.”

He called on the Department of Housing, Local Government and Heritage to review how LPT funds and the Equalisation Fund are distributed to ensure that rural counties receive the support they need without being forced to raise local taxes.

He also pointed to recent changes in other counties, such as Cavan, where the funding baseline was increased in 2024, resulting in a €2.3 million rise in equalisation support. “Why can that happen in Cavan but not in Mayo?” he asked. “It’s time rural areas got a fair deal.”

Councillor O’Brien said he will continue to advocate for the needs of rural communities and fight against what he sees as an unjust property tax model that disproportionately affects those living outside major urban centres.

“We need to stand up for people in rural Mayo,” he said. “They are being asked to pay more tax, but they are not seeing the benefits.

“Until that changes, I will continue to oppose any increase in the Local Property Tax - and call for a system that supports fairness, not just revenue.”