Local Government (Financial Provisions) Act , 1978

1 Interpretation.

1.—(1) In this Act—

“the Act of 1838” means the Poor Relief (Ireland) Act, 1838:

“the Act of 1928” means the Local Government (Rates on Small Dwellings) Act, 1928;

“the Act of 1930” means the Local Government (Dublin) Act, 1930;

“the Act of 1934” means the Limerick City Management Act, 1934;

“the Act of 1939” means the Waterford City Management Act, 1939;

“the Act of 1955” means the City and County Management (Amendment) Act, 1955;

“the Commissioner” means the Commissioner of Valuation;

“community hall”, subject to subsection (4) of this section, means any hereditament, other than a hereditament exempted from rating under either section 63 of the Act of 1838 or section 2 of the Valuation (Ireland) Act, 1854, or the premises of a club for the time being registered under the Registration of Clubs (Ireland) Act, 1904, which consists wholly or partly of a hall or similar building, is not mainly used for profit or gain and is occupied by a person who ordinarily uses it, or ordinarily permits it to be used, for purposes which both involve participation by inhabitants of the locality generally and are recreational or otherwise of a social nature;

“domestic hereditament” means any hereditament which consists wholly or partly of premises used as a dwelling and which is not a mixed hereditament;

“farm building” means any farm, outhouse or office building completed before the 1st day of March, 1959, and as a consequence of the erection of which section 14 of the Valuation (Ireland) Act, 1852, fell to be applied;

“housing authority” means a housing authority within the meaning of the Housing Act, 1966;

“lodgings” shall not be construed as including accommodation provided in premises registered under the Tourist Traffic Acts, 1939 to 1975;

“the Minister” means the Minister for the Environment;

“manager” means a manager within the meaning of section 1 of the Act of 1955;

“mixed hereditament” means a hereditament which consists wholly or partly of a building which is used partly as a dwelling to a significant extent and partly for another or other purposes to such an extent;

“municipal rate” means the municipal rate within the meaning of Part II of the Income Tax Act, 1967;

“secondary school” means any hereditament (not being a hereditament exempted from rating under either section 63 of the Act of 1838 or section 2 of the Valuation (Ireland) Act, 1854) which consists wholly or partly of premises which are for the time being used as, or as part of, a secondary school which is recognised by the Minister for Education for the purposes of rules made by him for secondary schools under the Intermediate Education (Ireland) Acts, 1878 to 1924 (whether or not the premises are also used to provide education at any level other than secondary school level);

“small dwelling” means a hereditament which is a small dwelling for the purposes of the Act of 1928 and which is not a mixed hereditament;

“the specified local financial year” means the local financial year ending on the 31st day of December, 1977;

“valuation” means a valuation under the Valuation Acts;

“valuation lists”means the valuation lists referred to in the Valuation Acts.

(2) A reference in this Act to a rate or to a rate in the pound shall, as the circumstances require, be construed as a reference to the county rate or the municipal rate or to a rate in the pound of the municipal rate or a rate in the pound of the county rate.

(3) For the purposes of this Act a hereditament shall not be regarded as being other than—

(a) a domestic hereditament, by reason only of the fact that—

(i) the hereditament is used to provide lodgings,

(ii) the hereditament is partly comprised of a yard, out-office or appurtenance, garden or other land usually enjoyed with the relevant dwelling,

(iii) the hereditament is partly comprised of a farm building,

(b) a secondary school or a community hall by reason only of the fact that it is partly comprised of premises used as a dwelling.

(4) (a) The fact that a hall is used or is designed for use for one or more particular sports or games shall not be a ground on which a rating authority or a Justice of the District Court may determine a hereditament to be a community hall.

(b) A premises shall not be regarded for the purposes of this Act as not being a community hall by reason only of the fact that it is only or is ordinarily used by persons of either a particular age group or a particular religious denomination.

(5) In determining, in relation to a particular local financial year, whether or not a hereditament is a domestic hereditament, a mixed hereditament, a secondary school or a community hall, regard to the purpose for which the hereditament is used shall be confined to the purpose for which, immediately prior to the making by the rating authority of the rate for that local financial year, the hereditament was ordinarily used or, where appropriate, was last ordinarily used.

(6) In case any building or buildings belonging to and usually enjoyed with a dwelling is a hereditament, or in case there are two or more such hereditaments, are all hereditaments, other than the hereditament comprising the dwelling, then if, but only if, the valuation or valuations of the first-mentioned hereditament or hereditaments does not exceed, or do not exceed in the aggregate, two pounds the first-mentioned hereditament or hereditaments shall, or shall each, as may be appropriate, for the purposes of this Act be regarded as being a domestic hereditament.

(7) In case any land entered as land in the valuation lists belongs to and is usually enjoyed with a secondary school or a dwelling and wholly comprises a hereditament apart from that comprising the secondary school or dwelling, as the case may be, then the hereditament which is wholly comprised of such land and the hereditament comprising such secondary school or dwelling shall for the purposes of this Act be regarded as together forming a single hereditament comprising a secondary school or a single domestic hereditament, as may be appropriate.

2 Specified valuation.

2.—(1) Subject to subsection (4) of this section, the specified valuation for the purposes of this Act of a hereditament shall, in relation to a local financial year, be—

(a) in case the hereditament is a mixed hereditament—

(i) where there is in force for the time being in relation to the hereditament a decision under subsection (6) or (8) of section 7 of this Act, the amount specified in the decision, and

(ii) in any other case, whichever of the following is the less—

(A) a sum equal to one third of the amount of the buildings valuation, or, where it is appropriate, of such proportion of that amount as is appropriate having regard to an enactment apart from this Act and in relation to which the rate for that local financial year may be made as regards the hereditament, or

(B) £18,

(b) in case the hereditament is a secondary school—

(i) where the hereditament is partly comprised of land which is entered in the valuation lists as land, the amount obtained when the buildings valuation, or in case there is in force for the time being in relation to the hereditament a determination under subsection (6) or (8) of section 7 of this Act, an amount equal to the part so determined as being attributable to the secondary school, is added to—

(A) the land valuation, or

(B) £40, or in case the hereditament is one to which an enactment mentioned in subsection (7) (b) of this section applies, the sum by reference to which rates would fall to be calculated if the relevant land valuation of the hereditament were £40,

whichever is the less,

(ii) in case the hereditament is not so partly comprised, an amount equal to the buildings valuation, or in case there is in force for the time being in relation to the hereditament a determination under subsection (6) or (8) of section 7 of this Act, an amount equal to the part so determined as being attributable to the secondary school,

(c) in case the hereditament is a domestic hereditament,

(i) where the hereditament is partly comprised of land entered in the valuation lists as land and the relevant land valuation does not exceed £1, or in case the hereditament is one to which an enactmentmentioned in subsection (7) (b) of this section applies, the sum by reference to which rates would fall to be calculated if the relevant land valuation of the hereditament were £1, the amount obtained when the land valuation is added to the buildings valuation or, where it is appropriate, such proportion of the buildings valuation as is appropriate having regard to an enactment apart from this Act and in relation to which the rate for that local financial year may be made as regards the hereditament,

(ii) in any other case, an amount equal to the buildings valuation or, where it is appropriate, such proportion of the buildings valuation as is appropriate having such regard and in relation to which the rate for that local financial year may be made as regards the hereditament,

(d) in case the hereditament is a community hall or farm building, the buildings valuation, or in case there is in force for the time being in relation to the hereditament a determination under subsection (6) or (8) of section 7 of this Act, an amount equal to the part so determined as being attributable to the community hall or farm building, as the case may be.

(2) The Minister may by order provide that all or any of the enactments mentioned in subsection (5) of this section shall cease to have effect.

(3) An order under subsection (2) of this section shall come into force in the local financial year next following that in which the order is made.

(4) Where an order under subsection (2) of this section is made, then as regards a hereditament which, in the local financial year in which the order is made, is a hereditament to which an enactment specified in the order relates, the following shall apply, namely, for the purposes of any rate the valuation of such hereditament shall, with effect from the commencement of the order, be the buildings valuation on which the rate was duly made for the said local financial year.

(5) The enactments referred to in subsection (2) of this section are section 13 of the Housing (Gaeltacht) Act, 1929 (as amended by subsection (4) of section 6 of the Housing (Gaeltacht) (Amendment) Act, 1959), section 6 (1) of the Housing (Gaeltacht) (Amendment) Act, 1959, section 3 (2) of the Local Government (Sanitary Services) Act, 1962, section 33 of the Housing Act, 1966 (as amended by section 12 of the Housing Act, 1970), and any enactment amending or extending the Housing Acts, 1966 to 1970, and which enables a temporary reduction or deferment of a revision of or an increase in a valuation to be made.

(6) Where an order under this section is proposed to be made, a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving the draft has been passed by each such House.

(7) (a) In this section—

“buildings valuation” means, in relation to a hereditament, the amount entered in the valuation lists in relation to the relevant valuation as respects buildings:

“land valuation” means, in relation to a hereditament, the amount entered in the valuation lists in relation to the relevant valuation as respects land which is so entered as land or, in case the hereditament is one to which an enactment mentioned in paragraph (b) of this subsection applies, the sum by reference to which rates would fall to be calculated as regards the hereditament and in relation to land which is so entered as land.

(b) The enactments referred to in paragraph (a) of this subsection are section 69 of the Act of 1930, section 28 of the Act of 1934, section 27 of the Act of 1939, section 19 of the Cork City Management (Amendment) Act, 1941, and section 21 of the Local Government Act, 1946.

3 Allowances in relation to rates for a local financial year other than the specified such year.

3.—(1) Where a rate is made by a rating authority as regards a hereditament to which this section applies, then the authority shall make an allowance to the person so rated by them in respect of the local financial year to which the rate relates and such allowance shall equal in amount the rate in the pound on the specified valuation, and accordingly the rate so made shall be abated (in whole or in part, as may be appropriate) by the authority by the amount of the allowance; provided that in case in such local financial year an allowance may be made under the Rates on Agricultural Land (Relief) Acts, 1939 to 1978, or under any Act amending or extending those Acts, as regards the hereditament, the allowance under the said Acts shall first be ascertained and the aforesaid allowance under this section shall be then reduced by the amount of the allowance so first ascertained.

(2) Where on the day on which a rate is made by a rating authority the authority are the owner of a dwelling situate in their functional area and provided for letting, the authority shall, with regard to the local financial year to which the rate relates and for the purposes of subsection (1) of this section, be deemed to have made in respect of such dwelling both a rate and an allowance under the said subsection (1).

(3) This section applies to any hereditament which is a domestic hereditament, a mixed hereditament, a farm building, a secondary school or a community hall.

(4) This section shall be deemed to have come into operation on the 1st day of January, 1978.

4 Allowances in relation to rates for specified local financial year.

4.—(1) Where a rate for the specified local financial year is made by a rating authority as regards a hereditament and the hereditament is either a domestic hereditament or a mixed hereditament, the authority shall make to the person so rated by them an allowance equal to one-quarter of the rate in the pound on the specified valuation and the rates due as regards the hereditament by the person to the authority shall be reduced by the amount of the allowance; provided that in case in such local financial year an allowance may be made under the Rates on Agricultural Land (Relief) Acts, 1939 to 1976, as regards the hereditament, the allowance under the said Acts shall first be ascertained and the aforesaid allowance under this section shall then be reduced by the amount of the allowance so first ascertained.

(2) An allowance under this section shall be made—

(a) in case the relevant rates for the specified local financial year have been paid prior to the making of the allowance and there are no arrears of rates outstanding regarding the hereditament concerned or if there are any such arrears they are less than the amount of the allowance, by way of a refund of such amount as is appropriate (which refund the rating authority concerned are hereby authorised to make),

(b) in any other case, by way of set-off (which set-off such rating authority are hereby authorised to make).

5 Allowances by certain landlords to certain tenants.

5.—(1) Where—

(a) a dwelling other than a small dwelling is let, and

(b) an allowance is made under this Act in relation to the relevant hereditament by a rating authority, and

(c) before the 1st day of January, 1978, the landlord paid or allowed to the person who was the tenant a deduction or set-off against, or indemnified such person in respect of, the rates,

then for so long, but only for so long, as such person continues to be the tenant the landlord shall—

(d) in case such person was tenant of the dwelling immediately before the commencement of this section, on and from such commencement make to the tenant—

(i) where the dwelling comprises, the whole of the premises to which the allowance mentioned in paragraph (b) of this subsection is made,

(A) an allowance in relation to the specified local financial year equal to the sum obtained by dividing the amount of the allowance mentioned in the said paragraph (b) and made as regards the specified local financial year by 365 and then multiplying the result by the number of days in the specified local financial year each of which is a day on which such person continued to be such tenant,

(B) an allowance in relation to any local financial year subsequent to the specified local financial year equal to the sum determined by the formula

	4A ____ 365		B

where—

A is the allowance mentioned in the said paragraph (b) and made as regards the specified local financial year, and

B is the number of days in the said subsequent local financial year each of which is a day on which such person continued to be such a tenant,

(ii) where the dwelling does not comprise the whole of such premises—

(A) an allowance in relation to the specified local financial year equal to such proportion of the sum referred to in subparagraphs (i) (A) of this paragraph as may be agreed between the landlord and the tenant or in default of such agreement such allowance (if any) as is appropriate having regard to subsection (4) (a) of this section,

(B) an allowance in relation to any local financial year subsequent to the specified local financial year equal to such portion of the sum referred to in subparagraphs (i) (B) of this paragraph as may be so agreed or in default of such agreement such allowance (if any) as is appropriate having regard to subsection (4) (b) of this section,

(e) in case such person was not tenant of the dwelling immediately before the commencement of this section but was tenant of the dwelling immediately before the 1st day of January, 1978, on and from the said 1st day of January make to the tenant—

(i) where the dwelling comprises the whole of the premises to which the allowance mentioned in paragraph (b) of this subsection is made, an allowance (if any) in relation to each local financial year subsequent to the specified local financial year equal to the sum determined by the formula

	3A ____ 365		B

where—

A is the amount of the allowance mentioned in the said paragraph (b) and made as regards the specified local financial year, and

B is the number of days in the local financial year as regards which the allowance under this Act is being made by a rating authority each of which is a day on which such person continued to be such tenant,