Minister Phelan introduces legislation to modernise rates collection system

A Bill to modernise the collection of rates was introduced in the Dáil by Minister of State John Paul Phelan.
Commercial rates, he said, make up approximately one third of local government current income every year and are the single largest income source for local authorities, providing income of almost €1.5 billion per annum.
This provides between 16% and 53% of total funding for local services at individual local authority level and makes a vital contribution to the delivery of local services.
He said the primary legislation relating to rates is the Poor Relief (Ireland) Act 1838 and only minor changes and adjustments have been made since then.
“One intention is that this legislation will encourage ratepayers to engage with their local authorities and will mean that the annual rates bill is not low on the priority list for payment by individual businesses,” he said.
“This approach to rates often forces local authorities to rely on the courts to help collect moneys owed, with the additional resources that requires, not just for local authorities but also for non-compliant ratepayers.”
In the period to 2014, he said the percentage collection levels of rates declined, impacting on the financial position of local authorities and their capacity to deliver services. “Local authorities are fully aware of the difficulties that many businesses faced in recent years and have worked with those businesses to agree flexible and realistic payment plans,” he said.
The focus of the legislation is, in part, to address those who will not engage with the local authorities, he said. “The Bill is not about increasing rates or punishing those who engage with their local authority and endeavour to pay their rates. I intend that enforcement proceedings will not be taken unnecessarily by local authorities and will be reserved for those who refuse to engage with the local authority on determining a payment plan. The current legislative proposals support the payment of rates by removing the requirement for businesses to pay their rates in two moieties and allows for payment plans to be agreed with local authorities to make payments in instalments.”