Rates on Transfer
LOCAL GOVERNMENT ACT 2014
PART 5
Financial Provisions Consequential on Dissolutions and Provisions relating to Rates
Section 29
Rates
29. (1) In this section—
“adjustment period”, in relation to a specified area, means a period referred to in subsection (7) within which the base year adjustment is operational;
“annual rate on valuation”, in relation to a year, means, subject to subsection (9), the rate determined by the local authority concerned as the rating authority pursuant to section 103(7)(b)(i) of the Principal Act;
“base year adjustment” means the adjustment, by way of discount or levy, receivable or payable under subsection (5) by ratepayers in a specified area during the adjustment period;
“specified area” means any area of a rating authority where a different annual rate on valuation to that determined for Year 1 of the adjustment period applied in the year immediately preceding Year 1;
“Year 1” means the first year of the adjustment period.
(2) A base year adjustment shall be determined in accordance with subsections (3) and (4) by a rating authority in respect of each year of the adjustment period for each of the specified areas of the rating authority.
(3) In respect of a specified area, the base year adjustment shall be calculated in Year 1 of the adjustment period, by the formula—
A – B
where
A is the annual rate on valuation in respect of the year immediately preceding Year 1 that is applicable in the specified area, and
B is the annual rate on valuation determined by the rating authority in Year 1 of the adjustment period applicable generally in the area of the rating authority.
(4) In respect of each year of the adjustment period subsequent to Year 1, the base year adjustment shall be adjusted separately for each specified area by the rating authority concerned, following consultation with municipal district members in that area, by reducing the discount or levy (as the case may be) referred to in subsection (5), incrementally each year, until it is eliminated.
(5) The base year adjustment applicable to a specified area shall be applied to rating bills issued to ratepayers in the specified area and shall operate as either a discount or levy (as the case may be) on the amount due calculated by reference to the annual rate on valuation.
(6) Subsection (5) applies to the levy provided for in respect of a property to which section 211B or 211E (inserted by the Local Government (Business Improvement Districts) Act 2006) of the Principal Act relates.
(7) Base year adjustments shall cease at the end of the adjustment period for each specified area, which period—
(a) shall not be greater than 10 years commencing with Year 1, but
(b) may, at the discretion of the rating authority concerned, be a shorter period in respect of any specified area within the administrative area of that rating authority,
and, accordingly, the adjustment period shall cease in respect of a specified area when the base year adjustment for that area has been eliminated or the period of 10 years referred to in paragraph (a) has elapsed, whichever first occurs.
(8) Notwithstanding subsection (7), where—
(a) in respect of a specified area the base year adjustment calculated in accordance with subsection (3) would result in a levy with a value greater than 20,
(b) the local authority concerned, following the adoption by it of a resolution for the purpose of this subsection—
(i) applies in writing to the Minister to make an order that the adjustment period applicable to such specified area may be greater than 10 years, and
(ii) such resolution and application states the length of the extension being sought (which extension so stated shall be in respect of a period not greater than 10 years),
and
(c) following consideration of the application under paragraph (b), the Minister determines that an extension should be granted,
then, the Minister may by order grant an extension, which extension may, if the Minister considers it appropriate in the circumstances but subject to it not being greater than 10 years, be different from that sought in the application referred to in paragraph (b) and, accordingly, in its application to that specified area, the reference to 10 years in subsection (7)(a) shall be read as if it were a reference to the sum of those 10 years and the extension provided for by that order.
(9) In respect of a rating authority to which this section relates, the annual rate on valuation determined by such rating authority in Year 1 of the adjustment period shall not be increased in subsequent years until the adjustment period ceases, as provided for by subsection (7), for every specified area within the administrative area of that authority.
(10) Notwithstanding subsection (9), it shall be lawful for the rating authority to determine an increase in the annual rate on valuation where—
(a) the adjustment period of a specified area in the administrative area of the rating authority has been the subject of an order under subsection (8), and
(b) the adjustment period applicable to all specified areas in the administrative area of the rating authority, other than any specified area that is the subject of an order under subsection (8), have ceased in accordance with subsection (7).
(11) Where a revaluation under the Valuation Act 2001 takes effect in a rating authority in any year after Year 1 of the adjustment period, the base year adjustment referred to in this section shall continue to be applied to relevant properties by means of a percentage discount or levy equivalent to the former base year adjustment as a percentage of the annual rate on valuation as determined by such rating authority in Year 1 of the adjustment period.
(12) This section does not apply to any rating authority where a revaluation under the Valuation Act 2001 takes effect in the first year of the adjustment period.
(13) The adjustment period referred to in this section shall commence on the first day of January in the year following the commencement of this section.
Annotations
Amendments:
F1
Substituted by Local Government Rates and other Matters Act 2019 (24/2019), s. 22(a), not commenced as of date of revision.
Modifications (not altering text):
C2
Prospective affecting provision: subs. (1), definition of “annual rate on valuation” amended by Local Government Rates and other Matters Act 2019 (24/2019), s. 22(a), not commenced as of date of revision.
“annual rate on valuation”, in relation to a year, means, subject to subsection (9), the rate determined by the local authority concerned as the rating authority pursuant to F1[section 3 of the Local Government Rates and Other Matters Act 2019];
Editorial Notes:
E16
Power pursuant to subs. (8) exercised (9.11.2017) by Local Government Reform Act 2014 (Rates) Order 2017 (S.I. No. 484 of 2017).
Section 30
Amalgamation of local funds of certain city councils and county councils
30. The local fund maintained immediately before the 2014 establishment day—
(a) by Limerick City Council and by Limerick County Council,
(b) by South Tipperary County Council and by North Tipperary County Council, and
(c) by Waterford City Council and by Waterford County Council,
shall, with effect from that day, be amalgamated and maintained by the successor authority in each case, as appropriate.
Section 31
Amendment of certain provisions relating to rates on vacant premises
31. (1) Section 71 of the Local Government (Dublin) Act 1930 is amended—
(a) by inserting the following after subsection (1):
“(1A) A local authority may—
(a) specify a local electoral area or local electoral areas within its administrative area where owners of vacant premises shall be entitled to claim and receive a refund of differing proportion of the municipal rate to that referred to in subsection (1), and
(b) determine the proportion of the refund to apply in respect of each specified local electoral area or local electoral areas in accordance with paragraph (a).
(1B) The specifying of a local electoral area or local electoral areas and the determination of the proportion of the refund shall be a reserved function.”,
and
(b) by inserting the following after subsection (3):
“(4) The Minister may make regulations specifying the financial considerations and administrative and other procedures to apply in relation to the performance by Dublin City Council of functions to which subsections (1A) and (1B) relate.”.
(2) Section 20 of the Cork City Management Act 1941 is amended—
(a) by inserting the following after subsection (1):
“(1A) A local authority may—
(a) specify a local electoral area or local electoral areas within its administrative area where owners of vacant premises shall be entitled to claim and receive a refund of differing proportion of the municipal rate to that referred to in subsection (1), and
(b) determine the proportion of the refund to apply in respect of each specified local electoral area or local electoral areas in accordance with paragraph (a).
(1B) The specifying of a local electoral area or local electoral areas and the determination of the proportion of the refund shall be a reserved function.”,
and
(b) by inserting the following after subsection (3):
“(4) The Minister may make regulations specifying the financial considerations and administrative and other procedures to apply in relation to the performance by Cork City Council of functions to which subsections (1A) and (1B) relate.”.
(3) Section 14 of the Local Government Act 1946 is amended—
(a) in subsection (1) by deleting “which is situated in a county but not in an urban area and”,
(b) by inserting the following after subsection (1):
“(1A) For the purposes of subsection (1) reference to county rate shall include a rate adopted by a city and county council.
(1B) A local authority may—
(a) specify a local electoral area or local electoral areas within its administrative area where owners of vacant premises shall be entitled to claim and receive a refund of differing proportion of the county rate to that referred to in subsection (1), and
(b) determine the proportion of the refund to apply in respect of each specified local electoral area or local electoral areas in accordance with paragraph (a).
(1C) The specifying of a local electoral area or local electoral areas and the determination of the proportion of the refund shall be a reserved function.”,
and
(c) by inserting the following after subsection (3):
“(4) The Minister may make regulations specifying the financial considerations and administrative and other procedures to apply in relation to the performance by a local authority of functions to which subsections (1B) and (1C) relate.”.
Section 32
Duty to inform rating authority of transfer of relevant property
32. (1) In this section—
“occupier”, in relation to property (whether corporeal or incorporeal), means every person in the immediate use or enjoyment of the property;
“owner”, in relation to a relevant 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;
“relevant property” shall be read in accordance with Schedule 3 of the Valuation Act 2001.
(2) Where relevant property, or an interest in relevant property, is transferred from one person to another person in circumstances that render that other person liable for rates on the property so transferred, then—
(a) it shall be the duty of the owner of the property (being the owner of the property prior to transfer) or such other person as the owner has authorised in writing to act on his or her behalf to notify, in writing, the rating authority in whose functional area the property is situated of the transfer not later than 2 weeks after the date of the transfer, and
(b) it shall be the duty of the person transferring the property being either the occupier or the owner, to discharge all rates for which he or she is liable for at the date of the transfer of the property or of an interest in it.
(3) Any rates due by an owner of relevant property and not discharged in accordance with subsection (2)(b) shall remain a charge on the relevant property, but that property shall not, as against a purchaser in good faith for full consideration in money or money’s worth or a mortgagee, remain charged with or liable to the payment of such unpaid rates after the expiration of 12 years from the date upon which the amount concerned fell due.
(4) The owner of relevant property shall be liable for a charge equivalent to no more than 2 years of the outstanding rates due from the previous occupier or occupiers where—
(a) the owner has not notified the rating authority in writing of a transfer of relevant property or an interest in relevant property in accordance with subsection (2)(a), and
(b) the requirements of subsection (2)(b) have not been met.
(5) Any charge due by an owner of relevant property and not discharged in accordance with subsection (4) shall remain a charge on the relevant property, but that property shall not, as against a purchaser in good faith for full consideration in money or money’s worth or a mortgagee, remain charged with or liable to the payment of such unpaid rates after the expiration of 12 years from the date upon which the amount concerned fell due.
(6) Any charge levied under subsection (3) or (5) does not affect—
(a) the liability of any previous occupier for outstanding rates in respect of which he or she is primarily liable, or
(b) the functions of the rating authority concerned under any other enactment to collect any outstanding rates from the occupier or occupiers primarily liable.
Annotations
Amendments:
F2
Repealed by Local Government Rates and other Matters Act 2019 (24/2019), s. 27 and sch. part 1 ref. 13, not commenced as of date of revision.
Modifications (not altering text):
C3
Prospective affecting provision: section repealed by Local Government Rates and other Matters Act 2019 (24/2019), s. 27 and sch. part 1 ref. 13, not commenced as of date of revision.
32. F2[…]
Section 33
Amalgamated valuation list
33. (1) Where before the 2014 establishment day or the transfer date, as the case may be, the Commissioner of Valuation made orders under section 19 of the Valuation Act 2001, in respect of the area of 2 or more rating authorities then subsisting, the councils of which areas were dissolved after that day or date by section 17 or 24, then the Commissioner shall, in due course, cause to be published under section 23 of that Act an amalgamated valuation list in respect of the area of the successor authority in each case, as if—
(a) the successor authority was in existence when the orders concerned were so made,
(b) the orders so made in respect of that area were orders that related to the successor authority,
(c) the successor authority was the rating authority when the orders were so made,
and, accordingly, each such list shall be effective for the purposes of the Valuation Act 2001.
(2) Notwithstanding the fact that, as a consequence of the 2014 establishment day order or the transfer date order, a dissolved authority ceased to exist as a rating authority for the area concerned, a valuation list existing for that area (together with so much of the central valuation list, within the meaning of the Valuation Act 2001, as relates to that area) and the value of each property appearing on the valuation list (together with so much of the central valuation list as so relates) shall, subject to any amendment made in accordance with the Valuation Act 2001, continue in force in relation to that area for all the purposes of that Act, and section 29 (as amended by section 45 of the Local Government Act 1994) of the Local Government Act 1946 until the date on which a valuation list is caused to be published under section 23 of the Valuation Act 2001 for the local authority area that includes the first-mentioned area.
(3) Any valuation list so published shall not affect the continuance of the central valuation list to which this section relates.
Section 34
References to county rate
34. Except where the contrary intention appears from this Act, a reference however expressed in any enactment to a county rate (being a county rate to which section 12 of the Local Government Act 1946 relates) shall, if the context permits, be read as a reference to a rate in respect of a county council or a city and county council.