Councillor highlights problem with Kildare commercial rates relief on vacant properties

The Kildare County Council policy of giving landlords 100% rates relief on commercial properties, which are empty but available to let, is not working, a county councillor has said.

Speaking at yesterday’s July meeting of Kildare County Council, a top council official said she had concerns about proofs from landlords as to whether their commercial premises were available for letting.

The council currently does not charge rates on buildings which are vacant but are available for renting.

But following questions from Social Democrat Cllr Bill Clear and Vera Louise Behan (Fianna Fail)  it emerged that there are problems.

At the council monthly meeting on July 29, Cllr Clear asked about the evidence needed from landlords to prove that their building is available for rent as they do not need to pay commercial rates if the building is available for rent.

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In a written report to members, Fiona Millane, Assistant Head of Finance, said while commercial rates are due even if a property is vacant, a landlord may qualify for relief.

The relief is applied on the account after the end of the year on certain conditions, including inspection of the property by the Council Revenue Collector, and confirmation that the building is available for rent.

She said councillors can vary levels of rates relief under Section 31 of the Local Government Reform Act 2014. Currently the relief is 100%.

Ms Millane also noted there had been no increase in the commercial rate struck by the council for ten years.

Addressing members at the meeting, Ms Millane said “in theory” landlords were supposed to pay the rates and then claim them back but in practice Revenue Collectors checked details with auctioneers, called to premises and took photos of signs.

But Ms Millane said: “I’ve had some concerns about letters  from auctioneers. We could not see them (the properties) available in daft.ie.”

Cllr Clear said that he had been told by letting agents that the system is wrong. 

“I have heard of businesses coming to Naas and not being able to get a premises to let in the centre and having to go to the ring road. Something is not working,” he said.

Cllr Clear said owners are living over buildings and not letting out the buildings below them. 

“Some have not been let out for ten years,” he said.

He said, in some cases, there were no signs of empty buildings being available to let or signs to show they were being let.

He said the current policy and procedure should be reviewed by the Strategic Policy Committee.

Mayor Suzanne Doyle said some towns had an oversupply of commercial property and suggested some properties should be reclassified as housing in them.

Cllr Seamie Moore (Ind)  said he was worried about what Cllr Clear indicated. 

“I have concluded that he is correct.”

Cllr Moore said that three years ago it emerged that in Naas, 11 landlords owned 119 properties between them. 

“Some people in town will place bets as to whether a landlord will say no when they are approached by a tenant to let,” he said.

Cllr Moore it was unfair that the council gave 100% relief. 

“We need to get smarter and shape up. I won’t be backing a 100% relief (at the next budget),” he said.

Cllr Vincent Martin (Greens) commended Cllr Clear’s motion. 

“We will have no difficulty with bona fide and honest landlords,” he said.