City councillors, who have the power to adjust the rate by plus or minus 15% each year, voted 16-10 last night to make no adjustment to the reset base rate for 2018.
Members of Fianna Fáil, Fine Gael, and the Independents group backed the decision to maintain the status quo, with Sinn Féin, Solidarity, and the Workers’ Party critical of the move.
The decision will generate almost €12m in income through Local Property Tax (LPT) for Cork City Council next year.
It follows a decision in Cork County Council this week where councillors also opted to maintain the status quo.
In recent weeks, Dublin City Council rejected proposals to increase its LPT rate for 2018, potentially costing the council up to €12m in income, while elected members in Galway were unable to decide between cutting services or hiking the rate this week.
Last night’s vote at Cork City Hall followed a brief meeting of the council during which chief executive Ann Doherty outlined its 2018 draft budget. It was
prepared on the basis that the LPT rate would not be changed.
Ms Doherty said: “The general economic climate and state of the national finances continues to impact on the city council. Many of our income sources continue to be under pressure, while increased demand for services in many areas increases the challenge of maintaining the city council’s finances in order.”
Councillors had the option of cutting the rate by up to 15%, which would have resulted in a net loss of €1.665m, or increasing the rate by 15%, which would have generated €1.6m.