Commercial Rates FAQ’s
• Why do we charge Commercial Rates
• Who is liable for Rates
• How to pay Rates
• How are Commercial Rates calculated
• Ratepayers in difficulty
• What happens if I neglect to pay Rates
• Duties of owners of Commercial properties
• Relief from Rates on vacant properties
• Offsetting of payments against Rates
Why do we charge Commercial Rates?
Commercial Rates are a property-based source of income for local authorities. The income from Commercial Rates underpins the entire range of services provided by local authorities.
Given the importance of commercial rates income for Wexford County Council the timely collection of commercial rates is essential for the efficient running of the Council.
Commercial rates are payable in equal moieties, the first on receipt of the demand, and the second on the 1st of July each year.
I am leasing a commercial premises. Who is liable for the Rates on the property?
The occupier of a property is legally liable for payment of the Rates on that property during their period of occupation.
How to pay Rates
• Pay Online – Use the self-service payment portal to manage your account, make payments and check balances.
• Recurring Card Payment – Set up a weekly, fortnightly or monthly recurring payment using your Debit Card. Please contact your Rate Collector to discuss this.
• Electronic Fund Transfer – Wexford County Councils bank details and your reference can be found at the end of your Rate Demand
• In Person – Call to any of Wexford County Councils Cash Offices throughout the County
• Post Office – Pay at any Post Office using the barcode on the front of your Rate Demand
How are Commercial Rates calculated?
Commercial rates are calculated by multiplying the ‘Rateable Valuation’ (NAV) of your property by a multiplier called the ‘Annual Rate on Valuation’ (ARV).
Rateable Valuations for all properties are determined independently by the Valuation Office who determine the NAV or ‘net annual value’, which equates to the rental value of a premises less certain expenses.
The legal definition for NAV is set out in Sections 48 to 55 of the Valuation Act 2001.
Further information on the Valuation Office and its role in determining the NAV and information for ratepayers can be found on www.valoff.ie.
Annual Rate on Valuation
The Annual Rate on Valuation is the figure used to calculate the annual Commercial Rates payable by the Occupier of a rateable property each year. This figure is determined by the elected members of the Council at the annual budget meeting each year and is based on the deficit between Council income and expenditure for the forthcoming year.
For 2023 the ARV is 0.253
Example of Rates Calculation
If the Valuation Office have valued your property at 20,000 then your commercial rates bill for 2022 would be €5,060:
20,000 (NAV) x 0.253 (ARV) = €5,060
I am in difficulty with my Rates Bill - What should I do?
Please contact your Rate Collector as soon as possible and your situation can be discussed in confidence.
What happens if I neglect to pay my Rates?
If you fail to pay your Rates by the specified period then your Rate Collector will refer the matter to our in-house legal section for appropriate legal action.
Legal action can include seeking Judgements at District Court, Circuit Court and High Court level, should a Judgement be obtained the Local Authority will seek to use all enforcement measures available, including:
• The seizure and sale of goods by the County Sheriffs Office
• Registration of Judgement Mortgages and possible sale of property
• Winding up of Companies through the appointment of a Liquidator
What is the duty on owners/ratepayers in relation to a transfer of property?
Section 32 of the Local Government Reform Act, 2014 places an obligation on
property owners, or their agents, to notify the Local Authority within 14 days of a
transfer of a 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, what should I do?
In order to discharge commercial rates on vacant properties, owners must apply for relief under the Vacant Premises Application (VPA) process.
The table below outlines the amount of relief that can be claimed in 2023:
|Annual Rates Charge||Relief Amount||Payment Amount|
|Up to €2,000||90%||10%|
|From €2,001 to €9,999||80%||20%|
For example, if you own a property that is currently vacant and has an annual rates charge of €5,000, in order to seek relief from paying the full charge you must submit a VPA form along with a payment of €1,000 (20%).
If relief is not sought through the VPA process the rates remain payable in full.
Vacant Premises Application (VPA Form)
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 rate account.