Dublin City councillors are being asked to increase the local property tax by 15% to offset a "devastating" deficit of €39 million caused by the coronavirus pandemic.

A special meeting will be held next Monday to fix the LPT rate for 2021.

If councillors agree to the tax hike, it would mean someone who bought a house valued at between €200,000 and €250,000 in 2013 would pay an extra €121.50 annually.

This would raise an extra €24 million in revenue. However, in recent years councillors in the capital have consistently voted to reduce the LPT rate by 15%.

In a letter to councillors, head of finance Kathy Quinn said the council is facing a €39 million deficit next year.

"I appreciate that many of you have legitimate concerns in relation to the impact of any increase in the LPT rate," the letter stated.

"However, in making a decision on the LPT rate, I would urge you to consider the devastating impact on Council services, if we have to find savings of €39 million."

She said that Covid-19 related costs this year will total €41 million, including extra spending on the Dublin Fire Brigade ambulance service and homeless services as well as other costs such as PPE and remote working technology.

Central government will be reimbursing the council for the deferment of commercial rates but Ms Quinn said there is an expected drop in non-rates income of €20 million involving fewer parking charges, planning fees and rent payments.

Despite reductions in spending, she said Dublin City Council will not be able to deliver a surplus this year and is looking at a deficit of €39 million for 2021.

There is no indication of extra funding from Government, she said.

In previous years, city councillors have complained that the property tax is unfair as Dublin residents have to pay more because of house prices.

They also point out that 20% of the money raised is given to other councils under the equalisation provision.