Frequently Asked Questions (FAQ)
What are Commercial Rates?
Commercial rates are a property tax on commercial properties. Rates are payable on commercial properties which have been valued by the Commissioner of Valuations. A rate demand is issued to all rate payers at the beginning of each year.
What is a Property Entry Levy (PEL) invoice?
If a valuation of a new property is carried out during the year, you may receive a Property Entry Levy (PEL) demand instead of a rates demand. In the following year, you will receive your rate demand.
How is my Commercial Rates bill calculated?
Your rates are calculated by multiplying the annual rate on valuation by what is known as the rateable valuation on your property. The rateable valuation of your property is determined by the Valuation Office and this information is provided on your rate bill.
Your rates can be calculated by reference to this simple example:
Valuation of property: €25,000
Annual Rate on Valuation (2024): €0.232
Rates payable: €5,800
What if I cease occupying a property or I sell the property?
Section 11 of the Local Government Rates & Other Matters Act 2019 imposes a duty on property owners (or their agents) and on occupiers to inform the Council of any change in their status as the liable person for payment of rates within 10 working days of any such change. Notification is necessary in circumstances where you were liable to pay rates at a property but no longer are OR if you have now become liable for payment of rates at a property.
Under Section 13 of the Act, owners of a commercial property must notify the council when the property is being sold within 10 working days of the sale. They must pay any rates for which they are liable in respect of that property for the period up to and including the day immediately before the sale.
A change of owner/ occupier form should be completed and returned to the Council in relation to any changes within 10 working days. Any liable persons who do not fulfil their obligations under Sections 11 and 13 of the Local Government Rates and Other Matters Act 2019, shall be liable for a Class A Fine. In the case of Section 13 they may also may be liable for imprisonment for a term not exceeding 6 months.
This legal obligation came into effect on 1st January 2024.The full text of the Local Government Rates and other Matters Act 2019 can be accessed at https://www.irishstatutebook.ie/
The change of Owner / Occupier Form for completion regarding Sections 11 and 13 of the Act is available here. For further information your relevant staff member (details above) or email commercialrates@donegalcoco.ie
Do I still pay rates if my property is vacant?
If a property is not occupied and available for lease or rent, you must send the Council photographs of the property (internal and external) as evidence that the property is unoccupied and vacant. Evidence that the property is available for lease must be provided in the form of an advert in a newspaper, a letter from an estate agent or a photograph of the property showing a for lease/rent sign on the property.
Do I pay rates if my property is under renovations/closed for repairs?
If a property is under renovations or closed for repairs, you should contact us in order that we can carry out an inspection. Rates are not payable for the period that the property is under renovations, subject to verification that this is the case.
What happens if there is a structural change to my property?
A revision of the valuation on a property can only be sought in the event of a material change having taken place since the last valuation. This can be as a result of renovation/extension works or whenever the property has reverted to domestic or agricultural use. An application form to seek a revision is available from here and should be returned to the Commissioner of Valuations, Valuation Office, Irish Life Centre, Abbey Street Lower, Dublin 1 with the appropriate fee.