Finian McGrath
Question:388. Deputy Finian McGrath asked the Minister for the Environment, Community and Local Government his views on correspondence (details supplied) regarding the Local Government (Rates) Bill 2013. [53825/13]
View answerTuesday, 17 December 2013
Questions (388)
Written answers
The Local Government Act 1946 provides that where a property in a county council or urban local authority area is unoccupied on the date of the making of the rate the owner becomes liable for payment of rates. However, the owner is entitled to a 100% refund if the property is vacant for specified purposes. These are where the premises are unoccupied for the purpose of the execution of additions, alterations or repairs; where the owner is bona fide unable to obtain a suitable tenant at a reasonable rent; and where the premises are vacant pending redevelopment.
A small number of urban local authorities have historically had separate legal provision enabling a refund of 50% of rates on vacant properties. While the same criteria for refunds apply, 50% of the rates paid is refundable to the owner of vacant premises in the cities of Dublin, Limerick and Cork. These legislative provisions are
- section 71 of the Local Government (Dublin) Act 1930;
- section 29 of the Limerick City Management Act 1934; and
- section 20 of the Cork City Management (Amendment) Act 1941.
The majority of local authorities are, currently, subject to the provisions of the 1946 Act and the 100% refund regime. Section 31(b) of the Local Government Bill 2013, as published, seeks to amend the Local Government Act 1946 by reducing the 100% refund regime to 50% for all local authorities, effectively reducing the refund rate to the same level as currently pertains in Dublin, Limerick and Cork cities.
In introducing the Bill into the Dáil in October I indicated that I am aware there are numerous factors to be considered when proposing an amendment to rates legislation including its effect on business sentiment and its impact on local government finance. I intend that the provision is not a further cost on business and will not have unintended consequences in practice. I have considered the debate on the provision that has taken place during the Bill’s passage through the Oireachtas to date. On foot of that, I propose to introduce an amendment to the Bill at Seanad Committee Stage to provide elected members with discretion in the operation of vacancy refunds, allowing members to respond to local economic circumstances.