Dáil Éireann Debate, Tuesday - 11 July 2023
427. Deputy Colm Burke asked the Minister for Housing, Local Government and Heritage if he will actively engage with local authorities to ensure that where commercial rates are already in place for a building, a waiver may be sought if such building is now used as a men's shed; and if he will make a statement on the matter. [34315/23]
View answerLocal 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 Tailte Éireann under the Valuation Acts 2001 to 2020.
While some property and land is exempt from rates (the full list of exempted properties is set out in Schedule 4 of the Valuation Acts 2001 to 2015), most commercial properties are subject to commercial rates. Rates are generally payable by the occupier of a commercial or industrial property.
The amount of rates liable on a property is determined by multiplying the valuation of the property set by Tailte Éireann by the Annual Rate on Valuation (ARV) set by the local authority. The ARV is decided by the elected members of each local authority in their annual budget and its determination is a reserved function of a local authority. I have no role in this regard.
The Local Government Rates and Other Matters Act 2019 modernised the legislation governing commercial rates and contains provision to enable a local authority to introduce rates waiver schemes to support the implementation of policy objectives, including; local economic and community plans; objectives contained in Development Plans and Local Area Plans; and national planning policies. The making of a scheme for the waiver of rates is to be a reserved function of a local authority. The parameters for rates waiver schemes will be addressed in Regulations to be made by the Minister. Such parameters may include, the specification of the maximum percentage of rates that may be waived by a local authority and the period in relation to which a scheme may be made.
The new provision, when commenced, will mean that elected members and local authorities can support specific objectives to promote community, social and economic development, urban planning or rural regeneration. It is the intention that such schemes can be made for specific local electoral areas or municipal districts, empowering local representatives to effect change at the most granular level locally.
It had been intended that the bulk of the provisions of the Act would be operational for the 2021 local authority budget cycle however, preparations were delayed due to the impact of the COVID crisis and work on the government funded rates waivers. Technical amendments to allow commencement of the Act in time for the 2024 budget cycle are currently before the Oireachtas. The amendments are contained in the Historic and Archaeological Heritage Bill 2023 which passed Committee Stage in the Dáil last week.
Section 15 of the Local Government Rates and Other Matters Act 2019, when commenced, will replace existing rates waiver schemes under the Local Government (Rates) Act 1970. Under existing schemes a rating authority may make and carry out a scheme, providing for the waiver by the authority of all or a portion of commercial rates due by ratepayers in respect of a specified class or classes of property. The making of such a scheme is subject to the consent of the Minister for Housing, Local Government and Heritage. No rate waiver schemes have been consented to in respect of commercial property.
Some local authorities have introduced locally designed business incentive schemes which promote the use of vacant commercial property. Such schemes rely upon Part 9 of the Local Government Act 2001 which provides that the function of local authorities include providing grants, loans guarantees or other financial aid to promote the interest of the local community, including economic interest. Unlike rates waiver schemes, no ministerial sanction is required for the setting up of these schemes.
