Commercial Rates FAQ's
- How are Rates Assessed?
- What is the Annual Rate of Valuation and how is it calculated?
- Who pays Rates?
- What happens if I don’t pay my Rates?
- What is the duty on owners/ratepayers in relation to a transfer of property?
- If my property is vacant am I entitled to a refund?
- Has the Council authority to set off a payment against rates due?
- Can I have my valuation revised?
- How can I contact the Valuation Office?
- Can the result of a revision application be appealed?
- Once a valuation is determined by the Valuation Office, and no appeal has been lodged, can it be reviewed?
- Is any Property Exempt from Rates?
- Can I apply for Partial Exemption for a Community Sports Hall?
- Property Entry Levy (PEL), what is it?
- Is there a reduction for part of a premises in Domestic use?
Disclaimer: The information provided is for guidance purposes only and is not intended as a definitive legal interpretation of relevant governing legislation.
How are Rates Assessed?
The Rate Charge is calculated by multiplying the ‘Rateable Valuation’ by the ‘Annual Rate on Valuation (ARV)’. The ‘Rateable Valuation’ of a property is determined by the Commissioner of Valuation. The ARV is set annually by the Members of Kerry County Council at their budget meetings. The ARV adopted by the Council for 2020 is €79.25. Following the abolition of the Town Councils in 2014, an adjustment process of the ARV across the former four Authorities is currently ongoing until the adopted ARV of €79.25 is achieved.
What is the Annual Rate of Valuation and how is it calculated?
Following the consideration of the Annual Budget (see Financial Reports) each year, the elected members determine the Annual Rate on Valuation for the following year. The shortfall between the cost of providing all services and the income from Government funding is funded through the collection of rates.
Who pays Rates?
The person liable for payment of rates is primarily the person or company in occupation of the rateable property on ‘The Date of Making the Rate’ with the following exceptions:-
• If the property is vacant at the Date of Making the Rate, the owner of the property is liable.
• In the event that another occupier takes occupation after the date the rate has been struck, the local authority can determine that the incoming occupier should pay a portion of the rate proportionate to their occupation.
This issue or other charges owed to Kerry County Council should be specifically addressed by you with your Solicitors during the preparation of leases or property transfers.
When are Rates Payable?
The Rate Invoice is issued annually, usually during the month of March, and is payable in two instalments, the first instalment (50%) plus any arrears outstanding (if any) is payable when the Rate Bill is issued. The second instalment is payable on the 1st July.
What happens if I don’t pay my Rates?
Failure to pay your Rates by the specified period will result in legal proceedings being issued, including a Court Summons where necessary. Kerry County Council may also register the debt as a judgement mortgage on the property.
What is the duty on owners/ratepayers in relation to a transfer of property?
The Local Government Reform Act, 2014 provides for a wide range of reforms to local authority functions, structures and procedures, and includes a number of changes in respect of commercial rates. Section 32 of the Act, which came into effect on 1st July 2014 places an obligation on property owners, or their agents, to notify the Local Authority not later than 14 days of transfer, where an interest in a rateable property is transferred and the liability for rates changes. Failure to notify Kerry County Council of a change in interest within 14 days of the transfer date, will result in a penalty for non-compliance in that, the owner becomes liable for an amount which is equivalent to the level of outstanding liabilities (up to a maximum of 2 years liability). Any penalty due and outstanding by an owner of relevant property due to non-notification will remain a charge on the property.
All ratepayers are reminded that:
• They are legally required to discharge all commercial rates due from them prior to their departure from a property or prior to the sale or transfer of an interest in a property.
• Where the owner is selling the property, it is their duty to discharge all rates for which he or she is liable for at the date of transfer of the property.
• Any rates due and outstanding by an owner of a relevant property will remain a charge on the property.
• Outgoing tenants/occupiers are required to discharge all rates liability prior to transfer of a property/vacating a premises.
• In the event of non-payment of rates due at the time of sale, either party or both parties can be sued for non-payment of any portion of the rates.
If my property is vacant am I entitled to a refund?
In cases where the property is vacant at the making of the rate the liability lies with the person entitled to occupy the property (the leaseholder or if there is no lease – the owner). Commercial rates are due even if a property is vacant. However, a vacant property may qualify for a refund of rates if the following conditions are met at the making of the rate;
• The bona fide inability of the landlord to obtain a suitable tenant at a reasonable rent.
• The execution of repairs/alterations.
• Declaration and submission of supporting evidence confirming the fulfilment of either of the above conditions.
Section 31 of the Local Government Reform Act, 2014 provides a change to rating law in relation to rates on vacant properties, local authorities may now vary the level of relief granted on vacant properties going forward. This will be decided each year as part of the annual budget process.
A Refund of Rates Application Form can be downloaded here.
A Vacant Declaration Form can be downloaded here or contact the Rates Department on 066 7162100 or email firstname.lastname@example.org
Has the Council authority to set off a payment against rates due?
Yes. If a payment is due to a person or company and rates are due by the same person or company, the payment may be set off against the rate.
Can I have my valuation revised?
Requests for revision of valuation are normally instigated by Local Authorities, but any owner or occupier of a rateable property can apply for revision directly to the Valuation Office provided that there has been a material change of circumstance in the property since it was previously valued. In brief, a material change of circumstance means a physical alteration or new building, total or partial demolition, or a sub division or amalgamation of relevant property. A change of Valuation status (e.g. from domestic to commercial or vice versa) is also deemed to be a material change of circumstance.
Download Application to the Commissioner of Valuation for a Revision of Valuation following a “Material Change of Circumstances” (Form R1)
In general, Kerry County Council will automatically list new properties for valuation – or those where significant alterations have taken place. Any person who is an interest holder in a property to which the Valuation Act 2001 refers, may on payment of the prescribed fee apply for a revision of valuation to the Commissioner of Valuation.
How can I contact the Valuation Office?
The contact details for the Valuation Office are as follows:
Block 2, Irish Life Centre
Lower Abbey Street
Dublin 1, D01E9X0
Telephone (01) 817 1000
Can the result of a revision application be appealed?
An appeals procedure exists for persons aggrieved by the Commissioner’s decision at Revision stage. Appeal application forms are issued by the Valuation Office upon issue of the Valuation Certificate or Notice resulting from the revision application. These forms can be downloaded from the Valuation Office Website. Rates assessed on the current effective valuation following revision result remain legally payable, while the appeal is being considered. If any refund or increase is applicable to the rate-payers account it will be applied once the result of appeal has been issued to the Local Authority. Appeals must be lodged within 40 days from a date specified by the Commissioner of Valuation and a completed form must be accompanied by the appropriate fee, payable to the Commissioner of Valuation.
If dissatisfied with the outcome of the appeal procedure the ratepayer can appeal to the Valuation Tribunal. Rates assessed on the current effective valuation remain legally payable while the tribunal appeal is being considered. If any refund or increase if applicable to the ratepayers account it will be applied once the result has been issued to the Local Authority.
For further information on Appeals & Tribunal Appeals please contact the Valuation Office at 01 8171000, email email@example.com or see www.valoff.ie The address for contact is: Block 2, Irish Life Centre, Abbey St Lower, Dublin. D01 E9X0
Once a valuation is determined by the Valuation Office, and no appeal has been lodged, can it be reviewed?
No. If an appeal has not been lodged within the relevant time frame, then no further right of appeal exists.
Is any Property Exempt from Rates?
Yes, Domestic properties, Community Halls, Farm Land and Farm Buildings, properties directly occupied by the State, Schools, and Churches etc. A full list of property not rateable is included in Schedule 4 of the Valuation Act, 2001
Can I apply for Partial Exemption for a Community Sports Hall?
The Valuation (Amendment) Act 2015, which came into effect on 8th June 2015, in connection with Community Sports Clubs amends Schedule 4 of the Valuation Act 2001 and provides a partial exemption from commercial rates for Community Sports Clubs that are registered under the Registration of Clubs (Ireland) Act, 1904. Community Sports Clubs not registered under the 1904 Act, and which operate on a not for profit basis, will continue to be exempt from rates and do not need to make an application.
Under the partial exemption, Community Sports Clubs registered under the Registration of Clubs (Ireland) Act 1904 will not be liable for commercial rates on buildings, or parts of buildings, used exclusively for community sport and not for the generation of income, or to generate income from participants in community sport, or by community organisations that use the building or part of the building for community purposes. Buildings or parts of buildings, used for or in conjunction with the sale or consumption of alcohol or food, retail use or hire for profit (other than outlined in the previous paragraph) are liable for rates.
The Valuation Office will revise the valuations of Community Sports Clubs benefiting from the amendment to Schedule 4. This process requires Community Sports Clubs to complete and submit an application (Form R2) and the accompanying documents listed below.
The completed application (Form R2) and accompanying documents should be posted or delivered to Sports Club Applications, Valuation Office, Block 2, Irish Life Centre, Abbey Street Lower, Dublin 1, D01 E9X0.
FAQ on partial exemption for Community Sports Halls can be accessed here.
Property Entry Levy (PEL), what is it?
The entry year property levy is a charge which the local authority applies to all newly erected or newly constructed properties pending the levying of commercial rates. It was introduced in 2007 under the Local Government (Business Improvement Districts) Act 2006. Commercial Rates will not be charged on any particular building for the same period. The levy will apply from the date of assessment of the Rateable Valuation of the property until the end of that year. Commercial rates will be charged from the start of the next year. The calculation/liability is similar to that of Commercial Rates.
The Local Government (Business Improvement Districts) Act 2006 is available on the Irish Statute Book website.
Is there a reduction for part of a premises in Domestic use?
The Rateable Valuations of properties, which were valued from May 2002 onwards, include the valuation of the commercial element of the properties only. Consequently, domestic allowances are not given in respect of such properties unless circumstances have changed since they were last valued. An allowance of one-third of the Rateable Valuation is given for property, which is part domestic and part commercial. This relief is subject to a maximum allowance of €22.86 RV. If you think you are entitled to a domestic allowance, you should make an application in writing to the Rates Department, Kerry County Council, Ashe Memorial Hall, Denny Street, Tralee, Co. Kerry V92 PVW3 quoting your rate account number.
If you are unhappy with this allowance or you feel that the allowance is insufficient you can apply to the Commissioner of Valuation to apportion your rateable valuation into it’s domestic and commercial elements. The completed form should be returned to the Rates Department for submission to the Valuation Office
Kerry County Council,
Ashe Memorial Hall,
Opening Hours Monday to Friday, 9.00am to 5.00pm