Dáil Éireann Debate, Wednesday - 19 January 2022
463. Deputy Jim O'Callaghan asked the Minister for Housing, Local Government and Heritage the level or percentage of funding that local authorities get from commercial rates; if he will provide the breakdown of commercial rates payments, by county; and if he will make a statement on the matter. [63145/21]
View answer464. Deputy Jim O'Callaghan asked the Minister for Housing, Local Government and Heritage the plans his Department has for the reform of business or commercial rates; and if he will make a statement on the matter. [63146/21]
View answer465. Deputy Jim O'Callaghan asked the Minister for Housing, Local Government and Heritage if his Department can provide both pre and post Covid-19 analysis of the yield to the local authorities from commercial rates; and if he will make a statement on the matter. [63147/21]
View answerI propose to take Questions Nos. 463 to 465, inclusive, together.
Each local authority is required to prepare an Annual Financial Statement (AFS) by the end of March following year end and to publish it by the end of June. These financial statements undergo an independent audit by the Local Government Audit Service. When all audits are complete, my Department publishes a consolidated Annual Financial Statement, compiled from the AFS published by each local authority. Information on commercial rates collected is available in Appendix 7 of the Annual Financial Statement. The most recent consolidated Annual Financial Statement published is for 2019. In that year local authorities collected €1,425.67m of commercial rates, which included current year accruals and arrears. The consolidated Annual Financial Statement for 2019 is available at this link: www.gov.ie/en/collection/e103b-local-authority-annual-financial-statements/
The level of local authority income from commercial rates in 2019 is set out in the table below:
|
Local Authority |
Rates Collected 2019 |
|
Carlow County Council |
€11,604,479.64 |
|
Cavan County Council |
€12,389,243.01 |
|
Clare County Council |
€38,709,115.77 |
|
Cork City Council |
€63,893,897.00 |
|
Cork County Council |
€123,284,692.00 |
|
Donegal County Council |
€27,746,967.88 |
|
Dublin City Council |
€320,093,619.90 |
|
Dún Laoghaire-Rathdown County Council |
€79,864,067.64 |
|
Fingal County Council |
€126,852,927.30 |
|
Galway City Council |
€34,079,385.70 |
|
Galway County Council |
€23,236,301.91 |
|
Kerry County Council |
€35,784,703.95 |
|
Kildare County Council |
€51,942,802.43 |
|
Kilkenny County Council |
€17,424,136.32 |
|
Laois County Council |
€11,592,946.41 |
|
Leitrim County Council |
€4,781,009.40 |
|
Limerick City & County Council |
€53,627,807.16 |
|
Longford County Council |
€7,367,602.41 |
|
Louth County Council |
€29,884,641.79 |
|
Mayo County Council |
€26,856,075.04 |
|
Meath County Council |
€34,285,905.32 |
|
Monaghan County Council |
€10,458,447.48 |
|
Offaly County Council |
€14,488,091.08 |
|
Roscommon County Council |
€10,311,745.50 |
|
Sligo County Council |
€10,461,576.18 |
|
South Dublin County Council |
€117,950,052.60 |
|
Tipperary County Council |
€27,711,053.04 |
|
Waterford City & County Council |
€28,437,225.44 |
|
Westmeath County Council |
€13,962,140.28 |
|
Wexford County Council |
€32,395,976.00 |
|
Wicklow County Council |
€24,194,959.19 |
|
Total |
€1,425,673,594.77 |
The rates accrued as a percentage of total income for 2019 for each local authority is set out in the table below:
|
Local Authority |
Rates Accrued as a Percentage of Total Income 2019 |
|
Carlow County Council |
28% |
|
Cavan County Council |
20% |
|
Clare County Council |
33% |
|
Cork City Council |
34% |
|
Cork County Council |
39% |
|
Donegal County Council |
22% |
|
Dublin City Council |
35% |
|
Dún Laoghaire-Rathdown County Council |
45% |
|
Fingal County Council |
52% |
|
Galway City Council |
41% |
|
Galway County Council |
22% |
|
Kerry County Council |
29% |
|
Kildare County Council |
36% |
|
Kilkenny County Council |
22% |
|
Laois County Council |
19% |
|
Leitrim County Council |
13% |
|
Limerick City & County Council* |
8% * |
|
Longford County Council |
16% |
|
Louth County Council |
32% |
|
Mayo County Council |
22% |
|
Meath County Council |
29% |
|
Monaghan County Council |
20% |
|
Offaly County Council |
24% |
|
Roscommon County Council |
18% |
|
Sligo County Council |
21% |
|
South Dublin County Council |
49% |
|
Tipperary County Council |
19% |
|
Waterford City & County Council |
22% |
|
Westmeath County Council |
20% |
|
Wexford County Council |
29% |
|
Wicklow County Council |
27% |
|
Total |
29% |
* Note that Limerick City & County Council's published current income includes shared service income from Housing Assistance Payments.
To mitigate the impact of COVID related restrictions, the Government recouped €729m to local authorities to fund the cost of a commercial rates waiver in 2020. This meant that for eligible businesses their commercial rates were funded by Government for nine months of 2020. Details of payments to local authorities to fund the commercial rates waiver for 2020 can be found at this link: www.gov.ie/en/publication/3ac02-support-for-businesses-impacted-by-covid-19-through-the-commercial-rates-waiver/
A further €424m was recouped to local authorities by Government to fund the cost of a commercial rates waiver for the first nine months of 2021. Details of payments made to local authorities in relation to Q1 to Q3 2021 can also be found at the above link. These are unprecedented measures, which offered support to businesses and financial certainty to local authorities. The Government, in Budget 2022, announced a more targeted commercial rates waiver for Q4 2021 to cover the hospitality, leisure and entertainment, and tourism sectors. €62.3m has been allocated by Government for this waiver. The annual financial statements for 2020 have not yet been audited and published. Therefore it is not possible to provide a post-Covid 19 analysis of the yield to the local authorities from commercial rates.
The Government recognised the need to modernise the collection of rates and the Local Government Rates and Other Matters Act 2019 was enacted on 11 July 2019. Elements of the Act include a modernisation of rates legislation and practice, including variation of rates payment arrangements; provision that newly valued properties and amendments to valuations of existing properties are effective immediately for rating purposes; the pro-rata levying of rates on occupiers based on period in occupation within a year; provision to enable a local authority to introduce rates waiver schemes to support the implementation of policy objectives, including: local economic and community plans; objectives contained in Development Plans, Local Area Plans and national planning policies; the application of interest payments on unpaid rates; and minimum charges for vacant commercial premises.
Currently only a portion of the Act has been commenced. Commencement of the remaining elements of the Act has been delayed due to the COVID crisis. The revised aim is to achieve the necessary amendments and make prescribed regulations in 2022 so that the legislation would be operational for the planning of local authority 2023 budgets.
