Businesses in Ennis and Kilrush are facing a rates hike for the third year in a row.
It’s part of a rates harmonisation process introduced in 2016 following the abolition of town councils, to bring rates in line with other areas across the county.
The county town will see a rise of 2.89% on last year’s figure, while Kilrush businesses will pay an additional 4.47% in 2018, though there will be increased incentives for businesses who pay their rates in full on time.
Clare County Council says prolonging the process would reduce its ability to provide incentives, but Independent Councillor James Breen, who voted against the third consecutive rise, says its unfair on businesses:
Statement From Clare County Council
Under the Local Government Reform Act 2014, Ennis and Kilrush Town Councils were abolished along with all other town councils in the country. As the commercial rate in the former town areas was not the same as the county rate, the Local Government Act 2014 required that the council harmonise the rates and have one rate for the county within 10 years of 2015. The harmonisation process began with the adoption of the county council budget in 2016.
If Clare County Council was to achieve harmonisation over a longer period of time, the additional income received from rates would not be sufficient to provide any incentives to reduce the burden on rate payers, especially in the small and medium categories. The impact of that approach would have resulted in a greater rates burden in the longer term. In addition the harmonisation process will result in all properties throughout the county with the same rateable valuation paying the same rates which is not the case at present.
Clare County Council introduced a scheme in 2016 whereby a payment grant is provided to ratepayers when the rates liability is fully paid within the required timeframe.
In 2017 approximately 80% of the properties in Ennis and 87% of the properties in Kilrush have rates costs of €5,000 or less per annum. Consequently the payment grant substantially reduces the impact of any rates increase for the majority of rate payers in these areas.