{"id":11933,"date":"2022-06-06T15:17:41","date_gmt":"2022-06-06T15:17:41","guid":{"rendered":"http:\/\/legalblog.ie\/?p=11933"},"modified":"2023-07-22T14:27:29","modified_gmt":"2023-07-22T14:27:29","slug":"rates-system","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/rates-system\/","title":{"rendered":"Rates System"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/rates-system\/#Background\" title=\"Background\">Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/rates-system\/#Council_Funding\" title=\"Council Funding\">Council Funding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/rates-system\/#Levy_of_Rates\" title=\"Levy of Rates\">Levy of Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/rates-system\/#2019_Act\" title=\"2019 Act\">2019 Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/rates-system\/#Valuations\" title=\"Valuations\">Valuations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/rates-system\/#Valuation_Appeal\" title=\"Valuation Appeal\">Valuation Appeal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/rates-system\/#Making_and_Charging_the_Rate\" title=\"Making and Charging the Rate\">Making and Charging the Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/rates-system\/#Enforcement\" title=\"Enforcement\">Enforcement<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Background\"><\/span>Background<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Domestic rates were discontinued under the Local Government Financial Provisions Act 1978.\u00a0 The Supreme Court in 1984 held that the system of valuation of agricultural rates was unconstitutional.\u00a0 It was based on too arbitrary a valuation in reference to the historical Griffith Valuation only.\u00a0 Local authorities are being paid a grant in lieu of agricultural rates.<\/p>\n<p>The Valuation Act, 1988 was a precursor of the 2001 Act.\u00a0 It provided for a revised system of valuation and appeal to the Valuation Tribunal.\u00a0 Following an interdepartmental review, the Valuation Act 2001 provided for the updating of the valuation system, the valuation of all rateable property every five to 10 years and removal of deficiency.<\/p>\n<p>In 1999 a working group on the reform of rates was established.\u00a0 Its main recommendation included re-enactment and modernisation of legislation;<\/p>\n<ul>\n<li>standardisation of rating law and practice across all authorities; liability to remain with the occupier;<\/li>\n<li>statutory right to pay by instalments;<\/li>\n<li>interest to accrue on outstanding rates;<\/li>\n<li>vacancy charge 50%;<\/li>\n<li>rate only challengeable by judicial review;<\/li>\n<li>rates to be within the tax clearance certificate system.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Council_Funding\"><\/span>Council Funding<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Local authorities funding comes from rates, government grants and services. \u00a0The annual rate is based on the residual sum, being the deficiency in funds in the authority\u2019s budget, which is not met from expenditure, state grants, local authorities, own resources.<\/p>\n<p>City and county councils are empowered to make rates.\u00a0 Town councils which were former Urban District Councils and Borough Councils, had power to levy rates.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Levy_of_Rates\"><\/span>Levy of Rates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The modern day rates system is still based on the system of rates applicable under the \u00a0Poor Law (Ireland) Act 1838.\u00a0 Rates are a tax levied on the occupiers of certain properties.\u00a0 All lands and buildings are in principle, subject to rates. Certain infrastructure is liable to rates.<\/p>\n<p>Rates are assessed on every occupier of rateable property.\u00a0 The person in actual occupation at the time the rate is made is liable.\u00a0 The occupier is the person or person who have the immediate use or enjoyment of the property. Where several persons are in different types of occupation, the person in paramount occupation is\u00a0 liable. A person is in occupation of a piece of physical infrastructure, if he is control of it.<\/p>\n<p>The occupier must be in exclusive possession of the land or buildings.\u00a0 This will generally require that he is a tenant or owner.<\/p>\n<p>Particulars of every rate are entered in a rates book.\u00a0 Accounts must be kept of things which are liable to be rated.\u00a0 Any person is entitled to take copies and extracts from the rates records.\u00a0 Individuals may inspect the records and take copies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2019_Act\"><\/span>2019 Act<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The purpose of the Local Government Rates and Other Matters Act 2019 is to modernise the legislation governing commercial rates, improve the rates collection powers of local authorities, and form a basis for greater enforcement powers by local authorities in their collection of rates. The Act provides for interest to be applied where rates are unpaid; and the application of minimum charges for vacant commercial premises.<\/p>\n<p>The Act also introduces mechanisms to allow local authorities to introduce targeted rates alleviation schemes. The rates alleviation (waiver) schemes are provided for in order 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 approval of these schemes would be a function of the elected members of the local authority and the cost of introducing an alleviation scheme would be met by the local authority, either through increasing income or reducing expenditure.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Valuations\"><\/span>Valuations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Valuation Office is obliged to value all relevant property under the legislation. The rate book is prepared on the basis of the latest valuation list. \u00a0The first valuation (Griffith\u2019s valuation) took place in 1838, on commencement of the poor law legislation.\u00a0 Valuations were not updated for many years, and new valuations were undertaken on and artificial and comparative basis, relative to existing older valuations.<\/p>\n<p>The Valuation Act 2001 went some distance towards modernising and making the law on rates valuation more coherent law. Under this legislation, property is to be valued by reference to the net annual value of the property.\u00a0 This is the rent which might reasonably be expected year on year.\u00a0 The cost of repairs, insurance and maintenance are assumed to be borne by the occupier. An alternative method is based on the notional costs of construction. The value is fixed at a percentage (5%) of the depreciated replacement cost plus the site value.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Valuation_Appeal\"><\/span>Valuation Appeal<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is an appeal against valuations for rating purpose.\u00a0 The owner \/ occupier or the authority itself or any person who has an interest may appeal. \u00a0\u00a0It may be made on the basis of comparable properties in the\u00a0 valuation list The first appeal is to the Valuation Commission.<\/p>\n<p>The second appeal \u00a0is to the Valuation Tribunal. There is a \u00a0further appeal to the High Court on a point of law only, with the possibility of a further \u00a0appeals on point of law to the Court of Appeal \/Supreme Court.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Making_and_Charging_the_Rate\"><\/span>Making and Charging the Rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The local authority makes the rate based at the valuations at the date of the adoption of its annual budget estimates.\u00a0 Once the rate has been determined based on the valuations and the poundage (the multiplier of the total valuation of premises), demand notes are issued by the rate collector.<\/p>\n<p>The rate is collectable in equal half instalments.\u00a0 The first is due in the early part of the year and the second on the first day of July.\u00a0\u00a0 At the end of the year the rate collectors prepare a schedule of uncollected rates and a decision is made regarding recovery or write off.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Enforcement\"><\/span>Enforcement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is a short form application to the District Court, whereby the rates collector makes a complaint, which is a statement to the effect that the rate is unpaid. The District Court may issues a warrant authorising distress and sale of goods. This Order is not a decree capable being registered as a judgment mortgage.<\/p>\n<p>The local authority may obtain a decree \/ order for the money due.\u00a0 The Council itself \u00a0(and not the rate collector) may use this procedure. \u00a0Proceedings can be bought in the District Court \/ Circuit Court in accordance with their limits of jurisdiction..<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-11933\" data-postid=\"11933\" class=\"themify_builder_content themify_builder_content-11933 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Background Domestic rates were discontinued under the Local Government Financial Provisions Act 1978.\u00a0 The Supreme Court in 1984 held that the system of valuation of agricultural rates was unconstitutional.\u00a0 It was based on too arbitrary a valuation in reference to the historical Griffith Valuation only.\u00a0 Local authorities are being paid a grant in lieu of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[337],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11933"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=11933"}],"version-history":[{"count":4,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11933\/revisions"}],"predecessor-version":[{"id":11941,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11933\/revisions\/11941"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=11933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=11933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=11933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}