Local 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 legislative basis for the levying of rates is spread over a number of enactments, dating back to the Poor Relief (Ireland Act) 1838. There have been six enactments relating to commercial rates in the past 30 years. The following table sets out the enactments and the relevant sections where appropriate.
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Enactment
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Relevant Sections
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Local Government (Dublin) Act 1993
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Section 37
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Local Government Act 1994
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Sections 45 and 47
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Urban Renewal Act 1998
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Section 10
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Local Government Act 2001
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Section 103
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Local Government (Business Improvement Districts) Act 2006
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Section 7
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Local Government Reform Act 2014
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Sections 29 to 34, Schedule 1 Part 2, Schedule 2 Part 6, Schedule 4 paragraphs 14 and 15
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With regard to the specific issues raised by the Deputy, section 10 of the Urban Renewal Act 1998 allowed local authorities to remit rates in support of the objectives of an integrated area plan, developed under that Act. With regard to relief for vacant premises, section 31 of the Local Government Reform Act 2014 introduced changes to the legal provisions in this area. It provides the elected members of individual local authorities with the power to vary the level of rates refunds that apply in individual local electoral areas within the authority’s administrative area. The Local Government (Financial and Audit Procedures) Regulations 2014 provide that the decision to alter the rate of refund should be taken at the annual budget meeting and that the rate of refund decided in respect of the relevant local electoral area shall apply to eligible persons for the year to which the budget relates. The absence of a decision to vary the refund means that the existing legislative provisions regarding the rate of refunds apply. A derelict property would not be capable of beneficial occupation and hence would not be liable for rates.
I have asked my Department to develop proposals for a consolidated Rates Bill to modernise and consolidate the legislation in this area. Among the measures being considered for inclusion in the General Scheme of the Bill are provisions to allow a local authority to introduce rates alleviation schemes to support local and national policy objectives. I hope to bring proposals in this regard to Government shortly.
