Commercial Rates
What are Commercial Rates?
Commercial Rates are payable on commercial, industrial and some other non-domestic properties. Local authorities calculate commercial rates liabilities on the basis of valuations provided to them by the Valuation Office, Tailte Éireann.
Who is liable for Commercial Rates?
Rates are due by the occupier of the premises if they are entitled to occupy the premises through ownership or a lease on the day the rate is struck. The occupier is liable for the rates for the whole year irrespective of whether they remain in occupation for the duration of the year or not. If there is a change of occupier during the year, the previous occupier and the new occupier can agree on a division of the rates due between them. New occupiers of commercial premises should check if there are any rates outstanding prior to signing of a lease as they can be held responsible for unpaid rates for up to two years previously.
What is the Annual Rate on Valuation (ARV) and how is it calculated?
Following the consideration of the Annual Budget each year, the elected members determine the Annual Rate on Valuation for the following year. The Annual Rate on Valuation is the product obtained when the total shortfall in Council income is divided by the cumulative total of all valuations of rateable premises in the county. The shortfall between the cost of providing all services and the income from Government funding is recouped through the collection of Rates. The Annual Rate on Valuation usually changes in line with the annual rate of inflation.
How are Commercial rates calculated?
The NAV of your property was set by Valuation Division, Tailte Éireann and can be found on your Valuation Certificate or on your annual rate demand. The ARV will be set by the elected members of Sligo County Council annually each year and is €0.2415 in 2023.
Your rates are calculated by multiplying the Annual Rate on Valuation, as determined by Sligo County Council, by the valuation on your property, as determined by the Valuation Division, Tailte Éireann. Your rates can be calculated by reference to this simple example:
| Valuation (NAV) | multiplied by | ARV | equals | Annual Rates |
|---|---|---|---|---|
| €5,000.00 | multiplied by | €0.2415 | equals | €1,207.50 per Annum |
Who can be held liable for rates?
In general, you must pay a commercial rates charge if you occupy a non-domestic property on the date that rates become payable.
What happens if I don't pay my rates?
Legal proceedings will be initiated for collection of the debt.
Do I need to notify Sligo County Council of any change of Owner or Occupier?
Under Local Government Rates and other Matters Act 2019, Section 11 owners of a Rateable Property are required to notify their Local Authority when there is a change in the occupation of their property i.e when a property is being sold or if there is a change in occupier including where a property becomes vacant.
Owners must complete a Section 11 Form within 14 days of the change taking place. Owners who do not notify the local authority within 14 days will incur a financial penalty. This penalty is an amount equivalent to up to two years of outstanding rates from the previous occupier. 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 pay 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. Any rates due and outstanding by an owner of relevant property will remain a charge on the property.
What happens with rates when I am selling or vacating my property?
You must complete and submit a Section 11 Form to the Rates Office within 14 days from the date of the transaction. You will be liable for any commercial rates owed on the property up to the date of sale.
If you are buying a property, it is advisable to check that all rates liabilities are paid up to date on the property. If they are not, they may remain a charge on the property.
What can I do if I am unhappy with the rates I am paying for my property?
The valuation of a property is determined by the Head of Valuation, Tailte Éireann - Valuation Division, Irish Life Centre, Abbey Street Lower, Dublin 1. No alteration can be made to the rates assessment of a ratepayer until such time as the valuation of a property is amended by the Head of Valuation.
A ratepayer or the Local Authority can seek to have the valuation on a property revised if there has been a Material Change of Circumstances. The completed form should be submitted to Valuation Division, Tailte Éireann and accompanied with payment of the prescribed fee. An officer from Valuation Division, Tailte Éireann will call in due course to the property, in order to conduct a revision of the valuation. Further details are available on www.tailte.ie
When Valuation Division, Tailte Éireann value the property, a draft certificate will be issued directly to the occupier/owner. If Rate Payers are not happy with the valuation as determined on the draft certificate, it is critical the occupier/owner make their views known to Valuation Division, Tailte Éireann at this stage, at no cost.
Valuation Division, Tailte Éireann can be contacted at the following address: Tailte Éireann, Block 2, Irish Life Centre, Abbey Street Lower, Dublin 1 – Telephone 01 584 6753.
Has the Council authority to offset 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 offset against the rates due.
Can the result of a revision application be appealed?
Following a new/revised valuation on a property, the owner/occupier and Sligo County Council are informed of the outcome, by Valuation Division, Tailte Éireann. The owner/occupier can appeal the decision to Valuation Tribunal within 28 days from the issue of notification, for a prescribed fee. A further appeal can be made the High Court and ultimately the Supreme Court, on a point of law.
Properties exempt from commercial rates?
A list of properties exempt from commercial rates are clearly outlined in Schedule 4 of the Valuation Act, 2001.
What is a Property Entry Levy (PEL)?
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.
Was there a Rates revaluation carried out in Sligo County Council?
Yes, a rates revaluation was carried out in Sligo by the Valuation office in 2017 – A new Valuation List for Sligo County Council was published on the 15th September 2017. The purpose of a revaluation is to bring more equity, uniformity, fairness and transparency into the local authority rating system. Following revaluation there is a much closer relationship between the rental value or valuation of a property and its commercial rates liability. Online Link to https://www.tailte.ie/
Revenue Collector Contact Details:
Fiona Lang – Email: flang@sligococo.ie Telephone Number: 071 911 1311 or 087 164 4045
Devona Finnegan – Email: dfinnegan@sligococo.ie Telephone Number: 071 911 1652 or 087 178 3447
Naomi Brennan – Email: nbrennan@sligococo.ie Telephone Number: 071 911 1322 or 087 164 4247