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Commercial Rates

Dáil Éireann Debate, Thursday - 8 November 2018

Thursday, 8 November 2018

Questions (285)

Brendan Griffin

Question:

285. Deputy Brendan Griffin asked the Minister for Housing, Planning and Local Government if a reduction in the commercial rates levied on a vacant business premises (details supplied) in County Kerry will be considered in order to incentivise a new business to lease the premises; and if he will make a statement on the matter. [46215/18]

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Written answers

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 2001-2015. 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.

The Commissioner of Valuation is independent in the performance of his functions under the Valuation Acts 2001-2015 and the making of valuations for rating purposes is his sole prerogative. The statute does not accord the Minister for Housing, Planning and Local Government any function in this regard.

Legislative provision is made for the refund of rates paid on vacant commercial properties in certain circumstances. The Local Government Act 1946 provides that where a property is unoccupied on the date of the making of the rate, the owner becomes liable for rates. However, the owner is entitled to a refund if the property is vacant for specified purposes, these being if the premises are unoccupied for the purpose 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. The collection of rates and the determination of eligibility for a refund in this context are matters for each individual local authority.

The Local Government Act 1946 provided that the owner was entitled to a 100% refund in most local authority areas. Separate legislation governed refunds in the cities of Dublin, Limerick and Cork, where the same criteria for refunds applied but only 50% of the rates paid were refundable.

With effect from 1 June 2014, when the relevant provision commenced, the Local Government Reform Act 2014 gives discretion to the elected members of individual local authorities 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 (either 100% or 50% as set out above). Guidance has been provided to local authorities and elected members in that regard.

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