Wednesday, 10 July 2019
Local Government Rates and Other Matters Bill 2018: Committee and Remaining Stages
The Senator is referring to buoyancy where new businesses open. When the revenue-neutral aspect of the revaluation process is mentioned, it means it is revenue-neutral in terms of the existing rates base. When a new business opens, such as when a wind farm is rated, the initial revenue does not go towards evening out the rates that are collected. "Revenue-neutral" refers to the existing rate base. Global buoyancy is included by amending section 56 of the Valuation Act. One of the main provisions which makes this legislation so time-sensitive is that there are a number of local authorities that will shortly embark on the revaluation process, at the same time as a revaluation for utilities is about to commence. Buoyancy created by new developments by utility companies could have been included in the overall pie of rates revenue in the relevant local authority and could have led to large utilities benefitting greatly from the rates revaluation, to the detriment of smaller businesses. This legislation separates the process of revaluation of global utilities from the process for mainstream business in a local authority area, such as Senator Paddy Burke's.