Dáil Éireann Debate, Tuesday - 6 October 2020
357. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if businesses that are accessing the commercial rates waiver can continue to do so if they are also on the vacant sites register. [28631/20]
Amharc ar fhreagraLocal authorities have a statutory obligation to levy rates on any property used for commercial purposes. An initial three-month waiver of rates for businesses forced to close business due to COVID-19, was announced in May. In order to enhance the supports available for enterprise, and in recognition of the fact that not only were many ratepayers forced to close business due to the public health requirements, but many that remained open suffered significant reductions in turnover, the waiver was extended from three to six months, running until 27 September 2020. The categories of eligible enterprise were also expanded somewhat. A 100% waiver was applied to all businesses with the exception of a small number of categories. The rationale for the exclusion of certain categories of ratepayers was that their operations were not as severely impacted by the pandemic, coupled with the need to direct resources appropriately. To support both the local government sector and the ratepayers impacted, €600m has been allocated by Government to fund the cost of the waiver, which took the form of a credit in lieu of rates.
Commercial rates legislation provides 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.
A vacant property which has availed of, or is availing of a local authority vacancy refund in 2020, was excluded from the six-month waiver of commercial rates.
Separate to rates legislation, the Urban Regeneration and Housing Act 2015, provides for the vacant site levy. The primary purpose of the levy is to act as an incentive for the bringing forward of vacant under-used sites for development for residential or regeneration purposes. The implementation of the vacant site levy provisions is a matter for each local authority.
Local Authorities can only apply the levy if the criteria set out in the Urban Regeneration and Housing Act 2015 are satisfied i.e. in the case of regeneration land
- the site, or the majority of the site, is vacant or idle, and
- the site being vacant or idle has adverse effects on existing amenities or reduces the amenity provided by existing public infrastructure and facilities (within the meaning of section 48 of the Act of 2000) in the area in which the site is situated or has adverse affects on the character of the area.
The condition where a vacant property is excluded from the six-month waiver relates to vacancy refund provisions under rates legislation rather than whether a property was subject to the vacant site levy and on a vacant sites register.
