County council misses out on millions in rates

Millions of euro is being potentially lost each year on providing vital council services in Co Cork because hundreds of businesses are not paying rates due to a backlog in valuations by a government-run department.

More than 600 businesses are still awaiting assessment by the Valuation Office, some of which haven’t paid a cent in rates since 2011.

The figures were obtained by Sinn Féin councillor Des O’Grady from council officials. They show that six businesses are still awaiting assessment for rates since 2011. A further 18 date from 2012, 151 from 2013, 67 from 2014, 226 from 2015 and 141 so far this year.

The government-run Valuation Office, which is based in Dublin, is responsible for evaluating the rates a business should pay.

That includes start-up businesses and ones which are extended. It is trying to carry out a national revaluation project, which is an assessment of new and improved properties.

However, there are not enough staff to carry out the huge volume of work.

The Valuation Office is responsible for determining and adjusting the rateable status and valuation of all commercial properties in the state.

For for a new property to be rated it must be first valued by the Valuation Office. Similarly, if a property is extended it must be assessed by the Valuation Office so any increased rate due on foot of its expansion can be realised.

Lorraine Lynch, the county council’s head of finance, said the council had “expressed its strong dissatisfaction with the situation and has requested that it be urgently remedied.”

However, she said is understood the Valuations Office is trying to put in additional resources to speed up the process.

Mr O’Grady said it was not good enough that 605 business premises still had to be evaluated with some not paying rates since 2011.

“This funding stream [rates to the council] cannot be claimed back retrospectively. They [the Valuation Office] are only saying they (the businesses) will be subject to re-evaluation in due course. This could be three years down the line,” said Mr O’Grady.

He said he was surprised council officials didn’t provide an estimate of the loss in revenue from these businesses in the report furnished to him. Ms Lynch said in a report that it is not possible to estimate what buoyancy (value) will be forthcoming once these premises are dealt with by the Valuation Office as that is a matter solely within that body’s remit and area of expertise.

She said it was not possible to estimate the backlog on a square footage basis as the variety of the developments listed and the particulars at hand do not facilitate such an analysis.

However, Mr O’Grady estimated that even if they were all very small outlets the revenue loss could be nearly €1m a year.

Cllr Melissa Mullane (SF) said it was the Government’s fault and the council should be compensated by it for the revenue losses. Council chief executive Tim Lucey acknowledged there were a significant numbers of valuations to be completed, which were putting “pressure on the council budget” and was “a less than desirable situation”.

After debate it was agreed the council should write to the Department of Finance asking it to ensure that it provides adequate resources to ensure the Valuation Office can speed up the process.

Hundreds of businesses not paying rates due to backlog in Government’s Valuation Office