Finance (Local Property Tax) Act 2012 section 20

Power of elected members of local authority to vary basic rate

Section 20 deals with the power of the elected members of a local authority to pass a resolution varying the basic rate of local property tax upwards or downwards for properties within their area.

• A local authority may pass a resolution to vary the basic LPT rate, either upwards or downwards, by a specified percentage (known as the local adjustment factor) for residential properties in its functional area.
• Before passing such a resolution, the local authority must consider its estimated income and expenditure, its financial position (including accumulated assets and liabilities), and the likely economic impact of the varied rate on its area and on liable persons.
• The local adjustment factor cannot exceed 15 per cent in either direction, and the local authority must notify the Minister for Housing, Local Government and Heritage in writing once a resolution is passed.
• The Minister may make regulations governing how the local adjustment factor is set, including requirements for public consultation, newspaper publication, notification of relevant persons, and any other procedural matters deemed necessary.