Róisín Shortall (Dublin North West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

1814. To ask the Minister for Housing, Planning, and Local Government the rates refund applying to vacant commercial property in respect of each local authority; and if he will make a statement on the matter. [1585/18]

John Paul Phelan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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.

Legislative provision is made 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.

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 individual 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.

My Department has collated information regarding the decisions by local authorities in relation to refund rates from 2015 to 2017. For 2015, four local authorities chose to amend their refund rate. Dún Laoghaire Rathdown County Council reduced its rate from 100% to 75%. Galway City and Louth County Councils reduced their rates from 100% to 50%. Limerick City and County adopted a refund rate of 25%. All other local authorities chose to retain the existing 2014 refund rate for 2015. This included Dublin City and Cork City which both retained the pre-existing 50% refund rates in their local authority areas.

For 2016, all local authorities continued with the same refund rate adopted in 2015, except Waterford City and County Council, which reduced its refund rate from 100% to 70%.

For 2017, five local authorities chose to amend the refund rate they had for 2016. Dublin City Council reduced from 50% to 45%, Dun Laoghaire/Rathdown County Council reduced from 75% to 50%, Fingal County Council reduced from 100% to 75%, Limerick City and County Council reduced from 25% to 10% and Waterford City and County Council reduced from 70% to 55%.