Written answers

Tuesday, 1 December 2015

Department of Environment, Community and Local Government

Commercial Rates Valuation Process

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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546. To ask the Minister for Environment, Community and Local Government if the taxation and valuation system of commercial properties via commercial rates is sufficiently transparent, given the significant variation in the efficiency and rate of collection; and if he will make a statement on the matter. [42362/15]

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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560. To ask the Minister for Environment, Community and Local Government if he will amend the taxation and valuation system of commercial properties via commercial rates, through the introduction of a commercial site value tax; and if he will make a statement on the matter. [42363/15]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 546 and 560 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 Act 2001. The Commissioner for Valuation has sole responsibility for all valuation matters, including the most appropriate method of valuation.  The levying and collection of rates are matters for each individual local authority.

It is important to acknowledge that commercial rates, as a local tax, and the rating system generally are deeply embedded in the local government system.  A large body of case law is well established and local authorities and ratepayers are, in the main, very familiar with, and generally accepting of, the operation and practice of the rating system.  Rates are also a stable source of financing for local government which is not affected unduly by short-term changes in economic circumstances.

Commercial rates are legally payable in two moieties; the first moiety and arrears are payable on the date of the making of the rate and the second moiety is payable on 1 July. In practice local authorities facilitate payments of commercial rates by instalments including by direct debit. As with all local charges, the invoicing and collection of due amounts is a matter for the local authority concerned to manage in light of prevailing circumstances and in accordance with normal accountancy procedures.

I am aware of the continued need to restrain costs on businesses. My Department has in recent years requested local authorities to exercise restraint in setting, and where possible to reduce, ARVs and they have responded positively in this regard. The national average ARV decreased each year from 2010 to 2014; 2015 and 2016 are not directly comparable with previous years due to the local authority mergers and the necessity to harmonise rates across new local authority areas.

I have no immediate plans to amend the legislation governing commercial rates.

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