Dáil Éireann Debate, Friday - 16 September 2016
550. Deputy Sean Sherlock asked the Minister for Housing, Planning, Community and Local Government the potential cost to the Exchequer of allowing new business start-ups to receive an exemption from rates for an initial time period and the continuation of the three year tax exemption for start up companies in towns and villages. [26362/16]
View answerLocal authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Acts 2001 to 2015. The Commissioner for Valuation has sole responsibility for all valuation matters. The levying and collection of rates are matters for each individual local authority. The annual rate on valuation (ARV), which is applied to the valuation for each property determined by the Valuation Office to obtain the amount payable in rates, is decided by the elected members of each local authority in the annual budget and its determination is a reserved function. Rates income is a very important contribution to the cost of services provided by local authorities such as roads, public lighting, development control, parks and open spaces. Locally elected members adopt the annual rate on valuation they consider necessary in order to provide the required services. The information requested is not available in my Department.
Under the provisions of the Local Government (Rates) Act 1970, a rating authority may make and carry out a scheme, providing for the waiver by the authority of all or a portion of commercial rates due by ratepayers in respect of a specified class or classes of property. The making of such a scheme is subject to my consent as Minister for Housing, Planning, Community and Local Government. No rate waiver schemes have been consented to in respect of commercial property.
Recent developments have seen some local authorities introduce locally designed business incentive schemes which promote the use of vacant commercial property. Such schemes rely upon Part 9 of the Local Government Act 2001 which provides that the functions of local authorities include providing grants, loans guarantees or other financial aid to promote the interests of the local community, including economic interests. Unlike rates waiver schemes, no Ministerial sanction is required for the setting up of these schemes.
Taxation policy is a matter for the Minister for Finance.
