Limerick won't reduce Property tax instead writes off millions in Commercial Rates...

power101

No Reduction for property tax in Limerick


The City increased their possible write off of debt to €55 million at the end of 2014 and actually wrote off €8 million.

Page 41 Limerick City Accounts

These debt write offs and increasing arrears are forcing us to pay higher local taxes and have worse local services.

Red King

If the Council forced the payment of Commercial Rates that are outstanding then half the businesses in the city would close down with immediate effect.

There are cases and judgements against businesses happening every day of the week. Many of these places have already closed unfortunately.

The reality is that since the recession it has become almost impossible to pay the commercial rates in full and keep the doors open.

I'd rather see the council do this and have businesses remain open and people stay in their jobs instead of lowering the property tax and watch the city completely die a death.

Victor

power101 wrote: »

Limerick won't reduce Property tax instead writes off millions in Commercial Rates...

Do these businesses actually still exist to be able to claim the rates? Do these businesses have money?

You can't get blood from a stone.

bigpink

Talking to someobe in business he said he pays his rates but huge number of busineses dont very unfair

Red King

bigpink wrote: »

Talking to someobe in business he said he pays his rates but huge number of busineses dont very unfair

Huge number can't.

bigpink

Not even attempting to pay anything

Insect Overlord

bigpink wrote: »

Not even attempting to pay anything

A "huge number" of businesses not evening attempting to pay anything? That's the kind of thing that should be a big news story, if it's true.

Red King

bigpink wrote: »

Not even attempting to pay anything

That just doesn't happen. If you make no effort at all to pay the Council take you to court.

So if you can't pay the rates you must come to an agreement with the Council on a payment schedule of some sort.

You can't just pay nothing and get away with it.

bigpink

Just going on what a long standing business owner told me.

Red King

Well they misled you.

Jofspring

Ya a letter from the council threatening court actions comes after a certain period of non-payment. You can set up a payment structure with the council if you are struggling.

osarusan

How much are the rates?

power101

The total amount of commercial rates invoiced was €71,095,239

The total amount collected was €46,128,313

The council wrote off €7,975,219 and have a total amount of arrears now of under just €24,966,926. They managed to collect only 65% of the rates that came due.

Jofspring

osarusan wrote: »

How much are the rates?

Barr the total above they are different for every individual business. A new structure came in last year. It's based on size of property and type of business. I know a lot of business that contested the charges they were sent due to wrong measurements and found that they were being over charged. Some by a few hundred euro and some by thousands.

jmch81

power101 wrote: »

The total amount of commercial rates invoiced was €71,095,239

The total amount collected was €46,128,313

The council wrote off €7,975,219 and have a total amount of arrears now of under just €24,966,926. They managed to collect only 65% of the rates that came due.

Vacant units are also invoiced at the start of the year. Once the landlord is trying to rent it out he is entitled to get a credit against the rates at the end of the year. Limerick gives 100% credit. Dublin and Galway city give 50%.

Waggaboo

I've said this before on here but I'm amazed any small businesses last a year when you see what they have to pay to the State between rates, VAT, Employers' PRSI and utility deposits etc.

To describe it as working for yourself is a complete misnomer because in most cases you're working for everyone else.

Jofspring

Employers PRSI is a big hinderence for small businesses. That and also the fact if someone self employed ends up closing up shop they have no support from the social welfare system despite paying tax, PRSI, rates etc...

bigpink

And many pay there rates and also alot dont ignore the notices until they have too then say we cant pay and then pay a tiny amount to say there our trying to pay

power101

jmch81 wrote: »

Vacant units are also invoiced at the start of the year. Once the landlord is trying to rent it out he is entitled to get a credit against the rates at the end of the year. Limerick gives 100% credit. Dublin and Galway city give 50%.

Are you sure that's correct? From what I have known Limerick commercial owners always had to pay 50% if the property was unoccupied. There was a change then brought in in January of 2015 where low ratepayers pay nothing if unoccupied. High ratepayers pay up to 75%

http://www.limerickpost.ie/2015/01/15/scheme-to-reduce-vacant-property-rates/

rain_soaked

i thought if the business - tenant refuses - cant pay the rates , the local authority just chase the owner of the property for it ?

power101

rain_soaked wrote: »

i thought if the business - tenant refuses - cant pay the rates , the local authority just chase the owner of the property for it ?

That is correct. Owner of the premises is ultimately liable for the rates. If tenant can't / won't pay then the building owner has to.