€28,778,211 collected in Commercial Rates in Donegal last year

Donegal County Council collected €28,778,211 in Commercial Rates in 2022.

This figure emerged as councillors examined a Report on Irrecoverable Commercial Rates 2022 when it came in for some scrutiny at Monday's meeting in Lifford.

It revealed the opening arrears at the start of last year was €14,607,087 while the value of Commercial Rates bills issued during the same year was €37,293,095.

It also told that the value of Commercial Rates written off owing to the property being vacant and for-lease during the year (legally uncollectable) was €4,692,807 while the sum of €2,125,121 was the value of Commercial Rates written off for other reasons.

A total of €1,986,950 proved to be the value of Covid-19 Waivers applied in
Q1 2022 added to credits applied following appeals to the Valuation Office.

In fact the total value of Commercial Rates deemed collectable in 2022 was €43,095,303 but the actual amount collected was €28,778,211. This left the value of Commercial Rates arrears carried forward at year-end 2022 at €14,317,092.

The report also showed that some Specific Doubtful Arrears amounted to €6,043,768, the portion of arrears carried forward deemed unlikely to be collected. The collection rate has increased from 70% in 2021 to 78% in 2022.

Independent councillor Nicholas Crossan said while he acknowledged the council pursued the rates, he was more interested in the person who habitually does not pay and refuses to pay any year and what were the council's options.

The council's head of finance, Richard Gibson said their income collection team did everything it could to follow up on all rates that were due.

"We don't let anything go, we carry forward any arrears that are not paid and we work with all of our customers to try and make sure rates are paid in full. We have a range of measures where we work with our customers depending on their ability to pay or wherever they might have a temporary problem or challenge in paying but we don't write off rates unless we've gone right to the wire with them," he said.

Mr Gibson said their option was legal action and enforcement for the collection of those rates.

"I know the members encouraged us recently to take on new legal assistants in that department and we have a new team of solicitors who are experienced in debt collection specifically working on that for us now since late last year so we do have enforcement powers to legally collect rates."

Cllr Micheal Naughton queried if the new rate valuations were coming in this year.

Mr Gibson explained that there were proposed evaluation certificates out for most businesses in the county at the moment and the new rates would be in force from January 1, 2024.

"Most businesses in the county will have already received notification as to what their rates bill will be for next year," he said.