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Commercial Rates

Dáil Éireann Debate, Thursday - 8 March 2018

Thursday, 8 March 2018

Ceisteanna (622, 623, 624)

Joan Burton

Ceist:

622. Deputy Joan Burton asked the Minister for Housing, Planning and Local Government the commercial rates incentive schemes for each local authority, including those categorised as general or special, currently offered in tabular form. [10829/18]

Amharc ar fhreagra

Joan Burton

Ceist:

623. Deputy Joan Burton asked the Minister for Housing, Planning and Local Government the eligibility requirements for all commercial rates incentive schemes, including those categorised as general or special, by local authority in tabular form. [10830/18]

Amharc ar fhreagra

Joan Burton

Ceist:

624. Deputy Joan Burton asked the Minister for Housing, Planning and Local Government the timeframe for the promised commercial rates modernisation legislation. [10831/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 622 to 624, inclusive, together.

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 Commissioner of Valuation has responsibility for valuation matters.  The Annual Rate on Valuation (ARV), which is applied to the valuation of 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.

Under the provisions of the Local Government (Rates) Act 1970, a rating authority may make and carry out a scheme, providing for the waiver by the authority of all or a portion of commercial rates due by ratepayers in respect of a specified class or classes of property. The making of such a scheme is subject to the consent of the Minister for Housing, Planning and Local Government. No rate waiver schemes have been consented to in respect of commercial property.

Some local authorities have introduced locally designed business incentive schemes which promote the use of vacant commercial property.  Such schemes rely upon Part 9 of the Local Government Act 2001 which provides that the functions of local authorities include providing grants, loans guarantees or other financial aid to promote the interests of the local community, including economic interests.  Unlike rates waiver schemes, no Ministerial sanction is required for the setting up of these schemes.

Commercial rates form an important element of the funding of all local authorities.  However, the legislative basis for the levying of rates is spread over a number of enactments, some dating back to the 19th century.  Many of the provisions are outdated and not suitable for business trends in the modern era.  My Department has developed legislative proposals to modernise and consolidate the legislation governing commercial rates.  Among the measures included in the General Scheme of the Bill are provisions to allow a local authority to introduce rates alleviation schemes to support the implementation of policy objectives, including: local economic and community plans; objectives contained in Development Plans and Local Area Plans; and national planning policies.

The Government last year approved the drafting of a Rates Bill. The General Scheme of the Bill is currently with the Attorney General’s office for drafting, with a view to its introduction as soon as possible.

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