Please Select an Option
Commercial Rates
Rates are essentially a property tax on commercial premises. They originated in the 19th century when all properties, with certain exceptions, was valued based on the annual letting value. Rates on domestic property were abolished in 1977 and in 1982 Rates on agricultural land and buildings were found to be unconstitutional.
Approximately 30% of Galway City Council's revenue expenditure is raised through commercial rates. The collection of rates on commercial and industrial properties is thus essential in maintaining the range of council services.
What is the Annual Rate on Valuation & how is it calculated?
Following the consideration of the Annual Budget each year, the City Councillors 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 city. 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 increases in line with the annual rate of inflation. The Annual Rate on Valuation for 2012 is €65.46
Rateable Valuations
All fixed properties has a rateable valuation, but rates are only payable on commercial/industrial properties. Rateable valuations are determined by the Commissioner of Valuation, not by the Local Authority. The rateable valuation is used by the Local Authority to determine the commercial rates payable by each ratepayer.
The Valuation List which was in force at 2/5/2002 is maintained by reference to values of comparable properties in the same rating area which were in the list at that date. This is referred to as maintaining the "tone of the List" by means of continuous revision. These existing valuations were calculated on the basis of their Net Annual Value ( the annual rent less the cost of repairs, insurance and maintenance) as at November 1988.
The Valuation Act, 2001 came into effect on the 2/5/2002 and it is the basis for the present rating system. Various classifications of property exist under the Act i.e.
- Relevant Property Rateable – (List rateable). All Rateable Property are itemised in schedule three, these are the types of property, which form the core of the rateable list and will form the valuation base for the budget meetings by the local authority.
- Relevant Property Not Rateable – (List not Rateable). This refers to buildings or land occupied by the state e.g. Defence Forces or Garda Siochana.
- Relevant Property Not Rateable – (Non List). Essentially this refers to Agricultural Land, farm buildings and domestic items.
- Relevant Property Not Rateable –(Non List Exempt). Non-List Exempt Property are itemised from Section 7 to 19 of Schedule 4.
For further information on valuations contact the Valuation Office or for a specific query regarding Valuations in Galway City, contact Damian Curran Phone 01-8176435
How are Rates Calculated?
Your rates are calculated by multiplying the Annual Rate on Valuation (ARV), as determined by the City Council, by the valuation on your property, as determined by the Commissioner of Valuation. Your rates can be calculated by reference to this simple example:
The Annual Rate on Valuation for 2012 is €65.46
| Property (2012) Payable: | ||||
| Valuation | ARV | |||
| €50 | multiplied by | €65.46 | Equals | €3,273.00 |
Who can be held liable for Rates?
The person liable for rates is the person in actual occupation at the making of the rate for the year, or upon his/her default the subsequent occupier. A subsequent occupier can be held liable for up to two years arrears of rates. In cases where the property is vacant at the making of the rate the liability lies with the person entitled to occupy the property at the making of the rate (the leaseholder or if there is no lease - the owner).
Payment Options:
Rates can be paid in the following ways:
- Direct Debit/Standing Order: Please complete the Direct Debit form and return to City Council, or alternatively complete standing order form and send to your bank directly.
- Post: Send a cheque (crossed and made payable to Galway City Council), money order or postal order to the Rates Office.
- Cash: To pay by cash you must call in person to the cash office in City Hall. (Note: do not send cash by post.)
- Electronic Fund Transfer: Bank of Ireland, Eyre Square Galway. Name of Account: Galway City Council, Account No. 12911047, Sort Code 90:38:16. (Please remember to use your Galway City Council Account No. as a reference on payment)
- Telephone: Credit card and laser accepted, phone individual staff officer below.
Name |
Phone No |
|
| Ruth McHugh | 091 536525 | rmchugh@galwaycity.ie |
| Derek Healy | 091 536561 | derek.healy@galwaycity.ie |
| John Waters | 091 536533 | john.waters@galwaycity.ie |
What happens with Rates when I am selling or vacating my property?
It is normal practice at the time of a sale or transfer of property that an apportionment account is drawn up between the parties concerned, whereby each party pays the portion of rates for his/her period of occupancy. However, this is an entirely private arrangement, which does not affect liability as far as the Local Authority is concerned. 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.
What happens if I don't pay my Rates?
Legal proceedings will be initiated for collection of the debt up to and including imprisonment.
Are Rates payable on vacant property?
In cases where the property is vacant at the making of the rate the liability lies with the person entitled to occupy the property at the making of the rate (the leaseholder or if there is no lease - the owner). However, a vacant property may qualify for exemption from rates if the property is vacant due to any of the following reasons on the day of making the rate;
- The bonafide inability of the landlord to obtain a suitable tenant at a reasonable rent
- The execution of repairs/alterations
- Vacant due to demolition or redevelopment.
Rates must be paid in full for the period claimed, and where there is a sum due to Galway City Council by the applicant under any enactment, at the point when the refund is to be paid, then the Local Authority are empowered to set-off the monies from the refund against this debt. (This is in accordance with Section 7 of the Local Government (Financial Provisions) (No.2) Act, 1983.
Upon completion of the refund application form and submission of supporting evidence confirming fulfilment of either of the above conditions- a refund of rates paid in advance of this application can be claimed for every month during which the premises was vacant. This is in accordance with the Local Government Act 1946, Section 14(1).
Revision Of Valuations
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.
In general, Galway City Council will automatically list for valuation, new properties 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.
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 Commissioner of Valuation, Valuation Office, 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 Commissioner of Valuation.
When the Valuation Office value the property, a draft certificate will be issued directly to the occupier /owner. If you are not happy with the valuation as determined on the draft certificate, it is critical the occupier/owner make their views known to the Valuation Office at this stage, at no cost. A ratepayer or the Local Authority can seek to have the valuation on a property revised. On completion of a revision application form R2.A and submission of same along with fee of €250 to the "The Commissioner of Valuation" a revision officer from the Valuation Office will call in due course to the property, in order to conduct a revision of the valuation.
Frequently Asked Questions
Q. I have just opened a business. What rates do I pay?
This depends on whether it's a newly constructed property or an existing rated property.
Newly constructed premises will require to be valued by the Valuation Office before Rates become payable. This involves an inspection of the premises by one of their qualified Valuers following which you will be notified of the proposed valuation. There is an appeal procedure should you wish to avail of it.
If you are taking over an existing rated property, then you will be liable for the existing Rates applicable to the premises. Extensive alterations will involve a revaluation. If you require information on the level of Rates applicable to that premises, you may contact any of the persons mentioned above.
Q. I have closed my business. Is the property still liable for Rates?
Yes, Rates are payable on all valued commercial/industrial property. However where such a property becomes vacant, the owner can seek a refund from the Local Authority of the rates paid provided it can be shown that, (1) the property was available for letting or (2) the property was undergoing alteration, renovations or repairs (3) Property was vacant due to demolition or redevelopment.
Q. I am leasing premises, who pays the Rates? The Owner or Myself?
The occupier of a premises is legally liable for payment of Rates on the premises. If the occupier fails to pay, any subsequent occupier can be held liable for up to two years of unpaid rates.
Q. 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, followed by a Court Summons. The City Council may also register the debt as a judgment mortgage on the property.
Q. What do I pay Rates for?
Commercial rates form approximately 30% of Galway City Council's income each year. They are not a charge for a specific service. Income generated from rates is used for the provision of a wide range of general services within the City area. Rates are the financial contribution business owners and occupiers make to the upkeep and quality of life of the local community. Income received from rates contributes to a range of services such as:
- Public Lighting
- Street Cleaning
- Roads and Footpath Upkeep
- Fire Service
- Parks and Open Spaces
- Environmental Protection
- Water Supply & Sewerage
- Libraries
- Heritage, Tourism, Public Amenities and the Arts
- Community Support and initiatives
Q. When are Rates Payable?
Rates are payable in two moieties per year. The first moiety is payable upon issue of the yearly Rates Demand, normally during the month of February/March. The second and final moiety is due on the 1st July.
Q. I am in difficulty with my Rates Bill - What should I do?
Please contact your Revenue Collector as soon as possible and your situation can be discussed in confidence.
Q. What happens if there is a Change of Occupant mid-year?
Legally the occupant at the date of making the rate is liable for the full rates for the year. Frequently, the purchaser and seller may agree on an apportionment of the rates, with the seller (or departing tenant) paying rates for the period up to departure, and the purchaser (or new tenant) paying the balance. Please advise the Rates Department if you are moving into or vacating a premises.
Q. I am taking over a premises - What should I do about the Rates?
It is very important to check with the Rates Section that all rates are paid up to date. Otherwise you will be liable for unpaid rates – this is known as “subsequent occupier” liability.
Q. What is Subsequent Occupier Liability?
A subsequent occupier can be liable for arrears of rates for up to two years from the making of the rate. It is up to the new occupier to ensure that all rates, including the current year's rates, and all other liabilities, i.e. water charges, etc. have been paid before the closing of a sale or the assignment of a lease of any rateable property. Information can be obtained from the Rates Section regarding outstanding balances in respect of rates and water charges due on properties.