New Obligations regarding commercial rates

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Created: Tuesday, January 12 2016 21:37

Section 32 of the Local Government Reform Act 2014 has modified Section 71 of the Poor Relief (Ireland) Act 1838 and deleted Section 19 of the Poor Relief (Ireland) Act 1849 to alter the liability of subsequent occupiers of the obligation to pay the rates due by the previous occupiers.

This relief from the obligation is conditional on (i) the new owner submitting a completed Section 32 Form within 14 days of the transfer date to inform the rating authority that the interest in the property has been transferred and (ii) the party transferring the property or interest in the property discharging all rates for which he/she is liable.

The 2014 Act states that if these conditions are not complied with, the new owner will be liable for a maximum of a two year equivalent charge of the rates due by the previous occupier and this penalty can be levied against the property as a charge.

It is the duty of the owner to inform the rating authority about the transfer of the interest in the property, or the transfer of the property itself, no later than 2 weeks after the date of transfer.

Any rates due by an owner, and not discharged, shall remain on as a charge on the property for up to 12 years.

It is important that parties to property transactions are familiar with the new provisions, and ensure compliance.