Dáil Éireann Debate, Thursday - 30 March 2023
165. Deputy Colm Burke asked the Minister for Housing, Local Government and Heritage if he will engage with local authorities with a view to introducing amended rates relief for commercial property, whereby the rate of relief available on commercial property would be reduced each year; and if he will make a statement on the matter. [15863/23]
View answerI understand the Question refers to both vacancy relief and rates alleviation schemes.
Local 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 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 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 Act 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.
The Local Government Rates and Other Matters Act 2019 was enacted in July 2019. Section 9 of the Act, which is not yet commenced, provides that a local authority may provide a temporary abatement for vacant properties, subject to a maximum relief which may be specified by the Minister, to ensure that all property owners (other than those whose rates liability would be below a de minimis threshold) make some level of payment to the local authority and that vacant property is discouraged in towns, villages and cities.
Section 15 which is also not yet commenced, provides for local authorities to introduce rates alleviation schemes to support specific national and local authority policy objectives. The approval of these schemes would be a reserved function of the elected members.
