€ 2m a year is lost in rates to Council
SLIGO County Council is losing out on a potential cash windfall of € 2m a year in rates due to the fact there are so many vacant properties in the city.
The owners of such premises can get a full refund on rates if they can show the property was available for letting or was undergoing renovation.
Indeed, the council finds it difficult to get rates off the vacant property owners at all. It’s costing the council a potential € 2m a year.
At Monday’s meeting of Sligo Municipal District, Independent councillor Declan Bree suggested that vacant property owners be billed for half what the rateable valuation is.
He told the meeting: “Figures from CBRE, the international commercial real estate firm indicate that more than one in five retail outlets in Sligo town centre is vacant.
“However, I come across people regularly who are interested in starting up new retail businesses in Sligo and they tell me that when they approach property owners or agents they are quoted rental figures which they are unable to afford, particularly as they start off their business.
“While rates are payable on all commercial and industrial property I am aware that when such a property becomes vacant, the owner can seek a 100% rates refund from the Council if the owner shows that the property was available for letting or the property was undergoing alteration, renovations or repairs.
“In 2014 legislation was enacted to give discretion to certain local authorities to vary the level of rates refunds that apply in individual local electoral areas.
“I believe we need to use that type of discretion here in Sligo as it would appear to me that some property owners have little interest of renting out their properties and are willing to leave them vacant for prolonged periods. This creates significant difficulties in terms of the visual impact on a street which affects neighbouring retail outlets.
He proposed the Chief Executive provide a report indicating the number of commercial/ industrial premises in the former Sligo Borough area on which rates were levied in each of the years 2016, 2015 and 2014; the report to also include the number of such premises which sought and received a refund in each of the years 2016, 2015 and 2014 on grounds that the property was vacant and available for letting or the property was undergoing alteration, renovations or repairs; the report to also include the loss of potential income to the Council in each year as a result of the refunds being provided.
Cllr Bree added there was one property in O’Connell Street owned by a bank which has been vacant for many years.
CEO Ciaran Hayes said every premises received a rates demand and it’s often the case they don’t come in and pay any rates. If court proceedings were taken there was no guarantee the council would get judgement.