Dáil Éireann Debate, Tuesday - 12 July 2022
394. Deputy Steven Matthews asked the Minister for Housing, Local Government and Heritage the steps that he is taking to ensure standardisation across all local authorities regarding commercial rate rebates for vacant commercial units; if he is concerned that such rebates act as a disincentive to returning these units to use; and if he will make a statement on the matter. [37201/22]
View answerLocal authorities have a statutory obligation to levy rates on the occupiers of rateable property in accordance with the details in the valuation lists prepared by the Commissioner of Valuation under the Valuation Acts 2001 to 2015.
Legislative provision is made for the refund of rates paid on vacant commercial properties in certain circumstances. The Local Government Reform Act 2014 allows local authorities to offer less than 100% refund and to vary the level of refund for vacant properties at its annual budget meeting. Since the introduction of the Act, a number of local authorities have taken the decision to reduce the percentage refund of rates available. In agreeing budgets for 2022, 19 local authorities made the decision to offer less than 100% refund to vacant properties, ensuring in those local authorities that some rates are paid on vacant commercial properties, helping discourage prolonged vacancy.
The Local Government Rates and Other Matters Act 2019 modernised the legislation governing commercial rates and contains provision for schemes for the abatement of rates on vacant properties. Section 9 of the Act provides that the Minister may specify the maximum vacancy relief to be applied and that schemes can be made to provide abatement to a specific class or classes of vacant property. The main objective of section 9 of the Act is to discourage commercial vacancy and incentivise occupancy. This marries with the main objectives in “Town Centres First”, "Housing for All" and "Our Rural Future".
Amendments are required to address key issues in the Local Government Rates and Other Matters Act 2019. The remaining provisions of the Act, including section 9, cannot be commenced until these issues are addressed. Plans to achieve necessary amendments, commence the legislation and introduce associated regulations were delayed due to the COVID crisis but it is intended to advance this work this year.
Action 19.13 of Housing For All commits to commencing section 9 of the Local Government Rates and Other Matters Act 2019. Guidance for elected members on the making of schemes under section 9, and on the flexibility and potential provided by the provision, will be key to empowering them to make schemes that will affect improvements locally to commercial vacancy. It is expected that guidance in this regard will issue to local authorities concurrently with the commencement of the legislation and taking effect of associated regulations.
