Rates Liability

Liability

The rate calculated in any year shall be due and payable on the first day of January of that year. The following persons are liable to pay the rate levied under this section:

• the occupier of the rateable property on 1st January
• if the property is unoccupied on that date, the person who is for the time being entitled to occupy the property on the date.

The rate is to be collected into equal moieties.  Rates are personally assessable on the occupier.  They are not a charge on the land as such.  The 2014 and 2019 provisions places liabilities on certain persons including successors in certain circumstances.

Rates are a preferential payment to certain extent.  See the sections on insolvency. They with other taxes have a certain degree of preference over ordinary unsecured creditors.

Rateable Occupation

A person in actual occupation of the rateable property at the time the rate is made, is liable to pay the rate.  The occupier is every person who has the immediate use or enjoyment of the   premises.  Where the premises are unoccupied at the making of the rate, the rate may be levied on the owner.

Where the premises is unoccupied, the owner was entitled to reclaim 1/12 for the rate for every month of non-occupation, when additions or repairs are being undertaken  or where the owner is unable to obtain a suitable tenant at a reasonable rate.

Rateable occupation requires that the occupier is in exclusive possession of the premises.  Accordingly, licensees who do not have exclusive and unrestricted use of the premises, may not be in rateable occupation.  It is presumed that the owner is in beneficial occupation.  Where more than one person has immediate use and enjoyment of the property, one or more may be in paramount occupation.

The occupation must be of value and benefit to the occupier.  He need not necessarily obtain a pecuniary benefit.  Occupation may not be rateable, where its condition is not capable of yielding a beneficial occupation.  Occupation should be more than transient or temporary.

Multiple Interests

Where a premises is subdivided, two parts may be valued and rated separately.  The local authority may apportion the rate between the separate parts.  They may revalue the part, where a division takes place in the course of the year.

Rates are levied on the landlord as immediate lessor of a building let in separate units.  The occupier is not entitled to deduct any rates from his rent and any contract providing otherwise is void.

A landlord of a non-occupied property may obtain remission of 1/12 for every unoccupied month., where the premises is unoccupied, for the purpose of works, repairs, alterations, or he is bona fide unable to find a tenant.

Rates Bill

A rates bill stating the rate levied shall be given by the rating authority concerned to a liable person and the rates bill shall include the following information:

• the amount of the rate;
• the date by which the rate is due and payable and the manner in which it is to be paid;
• the address of the rateable property;
• the rateable valuation of the rateable property;
• any other information considered necessary by the rating authority.

A rates bill shall be addressed to the liable person concerned by name and may be so served on or given to the person in one of the following ways:

• by delivering it to the person;
• by leaving it at the address at which the person ordinarily resides or, in a case in which an address for service has been furnished, at that address;
• by sending it by post to the address at which the person ordinarily resides or, in a case in which an address for service has been furnished, to that address; or
• by electronic means, in a case in which the person has given notice in writing to the person serving or giving the notice or document concerned of his or her consent to the notice or document (or notices or documents of a class to which the notice or document belongs) being served on, or given to, him or her in that manner.

Liability Issues

Where the name of the liable person concerned cannot be ascertained by reasonable inquiry, a rates bill under this section may be addressed to “the occupier” or “the owner” as the case may be.

The “owner” in relation to a rateable property, means a person (other than a mortgagee not in possession) who, whether in that person’s own right or as trustee or agent for any other person, is entitled to receive the rent of the property or, where the property is not let, would be so entitled if it were so let;

Rate dues shall be payable by a liable person in such manner and in respect of such period or periods as the rating authority concerned shall determine.

Where the valuation of a rateable property on the valuation list is amended or a new rateable property is included on the valuation list on foot of a valuation carried out, the rating authority concerned may amend the amount of the rate calculated, as the case may be, in respect of the relevant properties.

Pending Valuation

Entry Year Property Levy (EYPL) is a charge applied to new-builds pending the levying of commercial rates.

The levy is calculated by reference to:
· Rateable valuation of the property as determined by the Commissioner of Valuation.
· The annual rate on valuation as determined by the Council.
· The date (entry date) the property is valued for rating purposes (i.e. entered in the valuation list).
· The number of days from the effective valuation date to the end of the year.

Interest and Set-Off

Local authorities may apply interest to unpaid rates.

Local authorities may offset any rates owing to them against an amount that the local authority owes to that party.

Vacancy Allowance

An application for an allowance may be made if the vacancy is as a result of one of the following:

• the inability to find a tenant
• the purpose of carrying out repairs or alterations
• the property is pending demolition or re-development

At the annual estimates meeting on November 22nd, 2021, the City Council determined the vacancy refund for the local financial year ending 31st December 2022 at 15%.

Please note that if an application for a vacancy credit is not received, the rates will be deemed to be payable and collection will be pursued.

To qualify for a refund, your premises must meet the following criteria:

• It must be vacant on the date the rates becomes payable, for the year being claimed
• It must have been vacant for one of the following reasons:
  • Vacant for letting (not for sale)
  • Vacant for repairs or alterations
  • Vacant pending demolition or re-development

State Property

The 2015 Act amended the categories of relevant property which are the subject of rates by the deletion of in relation to property directly occupied by the State. This results in such properties being no longer subject to valuation.

It amended the thes categories of property which are to be treated as not rateable by inserting a description of property, being a building or part of a building, land or a waterway or a harbour directly occupied by the State.

This clarifies the definition of what constitutes State property by providing for a narrower definition of State occupied property, limiting the rates exemption that accrues to State occupied property to property directly occupied by:

• a Department of State,

• an office or branch of the public service specified in the schedule to the Public Service Management Act 1997,

• the Defence Forces or

• the Garda Síochána,

or used as a prison or place of detention.