Kilkenny County Council has said it will probably not be able to reduce the Local Property Tax because of a protest at the controversial Central Access Scheme in the city.
Campaigners have been staging a round-the-clock protest in opposition to the building of a new road and bridge in the city centre.
The council said extra costs occurred, including security, at the protest are currently running at €200,000 and rising.
Gardaí said they have also incurred costs of thousands of euro regarding overtime and extra man hours.
The contract was due to finish by the end of September, but it is unlikely that time scale will now be met, which may lead to further costs.
A council spokesperson said the local taxpayer will ultimately have to foot the bill, which will mean any possible decrease in the property tax will not now be likely.