Commercial rates are an annual charge on commercial property to pay for the general provision of services of local authorities. 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.
What are rates?
Rates are a tax levied on commercial property. They are not a charge for specific services rendered. Properties assessed for rates includes buildings, railways, tolls, shops, factories, offices, etc
What is rateable valuation?
Rateable valuation is the tax base. It is based on the net annual letting value of a property (i.e. rent payable on the open market etc.). Rateable valuations for all properties in the state are determined by the commissioner of valuation and set out in the valuation list, which is updated regularly.
Who pays rates?
Generally the person liable for the payment of rates is the person in occupation of a rateable property at the date of the making of the rate.
How are rates assessed/calculated?
Rates are based on two main elements:
- The rateable valuation (the tax base) of a property as determined by the commissioner of valuation
- The annual rate on valuation (the tax rate) as determined annually by westmeath County Council as part of the budgeting process
Example of calculation of rates payable on a property:
RV (Rateable Valuation of Property) €100.00
Annual Rate on Valuation for 2016 = €72.99
Rates due for the year = €100 x 72.99 = €7299.00
My rateable valuation is too high or I think I am entitled to an exemption from rates?
Persons aggrieved at the valuation on their property may submit the property for revision online at www.valoff.ie, subject to the payment of a fee of €250.00 per valuation record.
The Valuation Office is contactable as follows:
Telephone: (01) 8171000, Lo Call: (1890) 333001
The Local Government Reform Act, 2014 provides for a wide range of reforms to local authority functions, structures and funding, and includes a number of changes in respect of commercial rates.
New duty on owners/ratepayers in relation to a transfer of property
Section 32 of the Act places -
- An obligation on property owners, or their agents, to notify the Local Authority where an interest in a rateable property is transferred and the person liable for rates changes.
- The person transferring the property, either the owner or occupier, must discharge all rates for which he/she is liable at the date of transfer.
Failure to notify Westmeath County Council of a change in interest within 14 days of the transfer date, may 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).
This obligation comes into effect on 1st July, 2014