Written answers

Wednesday, 21 March 2012

Department of Environment, Community and Local Government

Local Authority Charges

9:00 pm

Photo of Jim DalyJim Daly (Cork South West, Fine Gael)
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Question 380: To ask the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 383 of 13 March 2012, if he will give his views regarding each point raised in the question, in particular to the fairness of the household charge on properties that are used for eight weeks of the year and that pay tax on any group profits made as they are under a limited company tax return; and if he will make a statement on the matter. [15449/12]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The EU/IMF Programme of Financial Support for Ireland under its fiscal consolidation measures commits to the introduction of a property tax for 2012. In light of the complex issues involved, a property tax, requiring a comprehensive property valuation system, would take time to introduce and accordingly, to meet the requirements in the EU/IMF Programme, the Government decided to introduce the household charge in 2012. The household charge is an interim measure and an equitable valuation based property tax will be introduced as soon as possible.

The household charge is a new dedicated source of funding for local government and will go towards paying for essential local services such as planning and development, fire and emergency services, maintenance and cleaning of streets and street lighting public parks, libraries, open spaces and leisure amenities.

The Local Government (Household Charge) Act 2011 and the Local Government (Charges) Act 2009, as amended, set out the legislation underpinning the household charge and the charge on non-principal private residences respectively.

Application of the legislation in particular circumstances is a matter for the relevant local authority. Interpretation of the legislation is a matter for legal advice in individual cases and ultimately a matter for the Courts. Under the legislation, an owner of a residential property on the relevant liability dates is liable to pay the charges, unless otherwise exempted or entitled to claim a waiver. The charges are on a self-assessment basis and it is a matter for an owner of a residential property on the liability date concerned to determine if he/she has a liability and, if so, to declare that liability and pay the charges by the due dates.

The legislation contains a common definition of "residential property" for the purposes of the Acts. Section 2(2)(d) of the Local Government (Household Charge) Act 2011 and section 2(2)(d) of the Local Government (Charges) Act 2009, as amended, provide that a building that is wholly used as a dwelling (other than a dwelling that forms part of a mixed hereditament within the meaning of the Local Government (Financial Provisions) Act 1978), and in respect of which local authority rates are payable, is not a residential property for the purposes of the household charge and the non-principal private residence charge respectively.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Question 381: To ask the Minister for the Environment, Community and Local Government his plans to introduce a change in legislation to achieve a tiered system in reduction in rates to help small businesses, as the present percentage rate reductions, favour the large rate payers, such as semi-States and so on, as much as the family businesses; and if he will make a statement on the matter. [15459/12]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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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 Act 2001. The levying and collection of rates are matters for each individual local authority. 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.

The Commissioner of Valuation, who has sole responsibility for all valuation matters, is conducting a programme of revaluation of all commercial and industrial properties throughout the State on a county by county basis. The purpose of the revaluation process is to provide for more consistent and up-to-date valuations for rating purposes and to assist in providing a more equitable distribution of valuations across those liable to pay rates.

The Commissioner, in consultation with my colleague, the Minister for Public Expenditure and Reform, has been reviewing various options for streamlining the valuation process and speeding up the national revaluation programme. In this regard, the Government recently approved the drafting of a Valuation Bill to amend the Valuation Act.

I have requested that local authorities exercise restraint in setting their 2012 ARVs. Across the 88 local authorities, the average change of ARV from 2011 to 2012 shows a decrease of 0.27%.

I recognise that these are difficult economic times for many businesses and I will continue to keep all matters relating to rates under regular consideration in my Department.

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