Answered on July 4, 2013
Deputy John Deasy asked the Minister for the Environment, Community and Local Government the number of times an order has been made since the enactment of the Valuation Act of 2001 requiring a rating authority to exercise its powers to make rates in such a manner that it does not exceed the amount of rates to be paid to it in the first year following a revaluation, except for any increase determined by the consumer price index.
Reply from Minister Phil Hogan (above): 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 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.
To allay concerns that local authorities might gain a disproportionate increase in rates income in the year following a revaluation, a provision was included in the Valuation Act 2001 to limit the overall amount of income it could raise through rates in the year following a revaluation to the total amount of rates liable to be paid to it in the previous year, plus buoyancy (arising from valuations determined in the year of a revaluation of newly constructed property), adjusted for inflation as measured by the CPI.
Rate limitation orders have been made in each of the local authorities to have undergone a revaluation to date, namely, South Dublin County Council, Fingal County Council and Dún Laoghaire-Rathdown County Council. Orders will be drafted for Dublin City Council, Waterford County Council, Waterford City Council and Dungarvan Town Council by year end to take effect from 1 January 2014.
Answered on June 27, 2013
Deputy John Deasy asked the Minister for Public Expenditure and Reform if his attention has been drawn to the massive increases in commercial rates due to be levied on businesses in County Waterford on foot of a statutory revaluation of commercial rates in Waterford city and county; and if he will make a statement on the matter.
Reply from Minister Brendan Howlin: As the Deputy will be aware, the national revaluation programme aims to provide up-to-date valuations for individual properties across all economic sectors that are subject to local authority rates. The revaluation process is the mechanism whereby economic changes that take place in the property market are reflected in the valuation lists for rates purposes and in individual ratepayers’ rates liabilities. The national revaluation programme is a priority for Government and is a feature of the Action Plan for Jobs 2012. The programme is particularly important given the significant changes that have occurred in rental values following the economic downturn of recent years. The purpose of a revaluation is to distribute commercial rates liabilities more equitably among ratepayers based on up-to-date values. Following revaluation, there will be a much closer relationship between rental value and commercial rates liability. Even though property values have fallen generally, given that the purpose is to redistribute the overall rates liability, some ratepayers will obtain a reduction while others will experience an increase from the process of redistribution but, overall, revaluation results in a fairer distribution of the rates burden.
::: Minister Hogan: harmonisation plans
Tuesday, 26 March, 2013
Deputy John Deasy asked the Minister for the Environment, Community and Local Government if he will outline the process involved in resetting the different commercial rate levels once town councils are abolished and local authorities are amalgamated.
Reply from Minister Phil Hogan: The Government’s Action Programme for Effective Local Government, Putting People First, indicates that in the context of reorganisation of local governance structures, the proposed new municipal districts will provide an opportunity to achieve a more coherent approach to rates and charges on a county-wide basis, having regard to funding requirements and the need to support employment and business competitiveness.
The Action Programme proposes rates harmonisation to cater for differences between Annual Rates on Valuation (ARVs) of towns and counties. My approach to rates harmonisation will seek to ensure, on the one hand, that harmonisation does not lead to significant net loss of revenue in individual counties with consequential implications for services, and on the other hand, that increases in rates do not impact negatively on businesses and employment. Definitive details, arrangements and procedures in relation to the funding of district level functions, and financial relations between district and county levels, will be developed in the context of the new local government funding arrangements generally, implementation of the new sub-county system and preparation of the legislation in relation to the reform programme.
Tuesday, 22 January 2012
Deputy John Deasy asked the Minister for the Environment, Community and Local Government if he will maintain the commercial rate levels in town councils to be abolished where the rate levels are lower in those town council areas than the commercial rate levels in contiguous local authority areas where the commercial rates are at higher levels, and where both local authority areas are to be amalgamated.
Deputy Deasy also asked the Minister if he has detailed the commercial rate levels in all town councils compared with contiguous local authority rate levels in those constituencies to be amalgamated and if he will publish those figures.
>> Click here for written replies received from Deputy Phil Hogan (above).
Dáil Éireann allocates a certain amount of time on Tuesdays, Wednesdays and Thursdays during which Deputies may ask questions of Members of the Government relating to Public Affairs connected with their Departments, or on matters of administration for whch they are officially responsible. The Taoiseach answers questions on his own Department on Tuesdays/Wednesdays.