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Local Authority Rates

Dáil Éireann Debate, Tuesday - 21 July 2020

Tuesday, 21 July 2020

Ceisteanna (277)

Neale Richmond

Ceist:

277. Deputy Neale Richmond asked the Minister for Housing, Planning and Local Government if local authorities can rely upon section 9 of the Local Government Rates and other Matters Act 2019 in the absence of regulations made pursuant to section 9(3) of the Act; if he plans to make regulations pursuant to section 9(3) of the Act; and if so, if the regulations will be made before November 2020 when local authorities will be proposing their annual budgets for approval. [16527/20]

Amharc ar fhreagra

Freagraí scríofa

Local authorities are under a statutory obligation to levy rates on the occupiers of rateable property 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 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. The Act provides that a local authority may provide a temporary abatement for vacant properties, subject to any 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. The Act allows the Minister to prescribe that the maximum level of relief can be further reduced by individual local authorities. No regulations in respect of section 9 have been made to date, and section 9 has not been commenced. Commencement of the various sections of the Act is under active consideration, and it had been intended that the bulk of the provisions would be operational for the 2021 local authority budget cycle, in November 2020. However, commencement will be delayed due to the impact of the COVID 19 pandemic.

Notwithstanding that, there is existing legislation in place that provides for a 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 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. A decision to vary the level of rate refund applying is a reserved function of elected members of a local authority.

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