Rates Exemption & Relief

Domestic

Prior to 1978, legislation made provision for temporary reductions in valuation for domestic (residential) property, where works were undertaken completed during a prescribed period. Relief from domestic rates were provided for  in cases of hardship by way of  waiver of rates and payment  in instalments.

Ultimately, domestic rates were entirely abolished by the Local Government (Financial Provisions) Act, 1978.  The local authorities were to be paid a grant by central government to compensate for rates lost.  Departmental control over local expenditure was strengthened.

Agricultural

Legislation dating back to 1920s, allowed for rates relief for occupiers of agriculture land.  1930 legislation established a national agricultural grant to local authorities (in lieu of rates) and provided for various agricultural allowances. The Rates and Agricultural Relief Act, 1967 granted 100% relief for the first £20 of holding up to a certain value].  The occupier was liable for part of the excess over £20.

The case of Brennan v. the Attorney General held that the method of valuing agricultural land under the Valuation Ireland Act 1852 was unconstitutional.  No new legislation was introduced and agricultural land effectively became de-rated. A Farm Tax Act applied was enacted in 1985, but was repealed in 1987.

General Exemptions

Exemptions from rating are provided for under the Valuation Act;

• agricultural land including land used for tillage, meadow, pasture, horticulture and  forestry;
• land developed for sport including outdoor surfaces, football pitches, tennis courts, race courses, golf courses but not including buildings and fixed structures;
• farm buildings;
• domestic premises;
• land or buildings used for public religious worship or by a religious denomination;
• land or building used for the purpose of caring of sick people or treatment of illnesses or as a maternity hospital;
• burial grounds or crematorium, which are not for profit;
• educational premises used exclusively for the provision of educational facilities predominantly funded by the exchequer and not for private profit and available to the public in general;
• art galleries, museums, libraries, parks, national monuments, normally opened to the general public and not establishments for profit;
• buoys, beacons and lighthouses;
• premises for the care of elderly, handicapped persons or disabled persons, where the body is not engaged in profit-making and expenses are defrayed by the exchequer;
• buildings and part of buildings used as a community hall;
• buildings or parts used for non-profits and devoted exclusively for charitable purposes or by a charitable organisation;
• organisations engaged in natural and built heritage;
• lands and buildings occupied by a society established for the advancement of science, literature or fine arts used exclusively for that purpose on a not for private profit basis;
• any turf bog or turf bank used exclusively for the purpose of cutting turf;
• premises used for public purpose are exempt.

Waivers

Local authorities may introduce rates alleviation (waiver) schemes to support local or national policy objectives.

In accordance with such regulations as may be made, a local authority may make a scheme provideg for the waiver by the authority of all or a portion of the rates due to it by ratepayers in order to support the following:

• the implementation of the National Spatial Strategy
• the implementation of a development plan;
• the implementation of a local area plan
• the implementation of a local economic and community plan

The making of a scheme is  reserved function to the elected members.

Abatement

A local authority may provide a temporary abatement for vacant properties, subject to any maximum relief which may be specified by the Minister, to ensure that all property owners (other than those whose rates liability would be below a de minimis threshold) make some level of payment to the local authority. A liable person may apply to a local authority for an abatement of rates under a scheme made by that authority.

It may apply to rates due to it by liable persons or classes of liable persons in respect of vacant properties of a class or classes for such period or periods of time as may be specified in the scheme. A scheme shall be approved at the local authority budget meeting held concerning the local financial year to which the scheme shall apply and the scheme shall apply for the whole of that local financial year.

The Minister may make regulations and, they may make provision in relation to all or any of the following matters:

• the specification of the maximum amount of abatement of rates that may be granted by a local authority under this section;
• the specification of the rateable valuation thresholds below which paragraph (a) shall not apply;
• the specification of the conditions and circumstances under which an abatement of rates may be granted;
• the specification of the financial considerations and administrative and other procedures to apply in relation to the making of a scheme by a local authority under this section;
• the public consultation process that must be followed by a local authority before a scheme under this section is approved;
• any other matters which appear to the Minister to be necessary or expedient for the purposes of this section.

The making of a scheme under this section is reserved to the elected members.

As soon as practicable after the making of a scheme under this section, a local authority shall publish on its website details of the scheme and procedure for the making of an application for an abatement of rates under the scheme.