Local Government (Household Charge) Act 2011

1.. Interpretation.

1.— In this Act—

“Act of 1992” means the Housing (Miscellaneous Provisions) Act 1992;

“Act of 2001” means the Local Government Act 2001;

“Act of 2003” means the Capital Acquisitions Tax Consolidation Act 2003;

“Act of 2005” means the Social Welfare (Consolidation) Act 2005;

“Act of 2009” means the Local Government (Charges) Act 2009;

“administrative area” has the meaning assigned to it by the Act of 2001;

“building” includes—

(a) part of a building, and

(b) a structure or erection of any kind and of any materials, or any part of that structure or erection, but excludes a structure that is not permanently attached to the ground, a vessel and a vehicle (whether mobile or not);

“certificate of exemption” has the meaning assigned to it by section 9 (1);

“certificate of waiver” has the meaning assigned to it by section 9 (2);

“city council” has the meaning assigned to it by the Act of 2001;

“county council” has the meaning assigned to it by the Act of 2001;

“enactment” has the same meaning that it has in the Interpretation Act 2005;

“functional area” means—

(a) in relation to a city council, the administrative area of that city council,

(b) in relation to a county council—

(i) the administrative area of that county council, and

(ii) the administrative area of any town council (within the meaning of the Local Government Act 2001) situated within the administrative area of that county council;

“household charge” has the meaning assigned to it by section 3(1);

“late payment fee” has the meaning assigned to it by section 7(1);

“late payment interest” has the meaning assigned to it by section 7(1);

“liability date” means, in relation to any particular year, 1 January of that year;

“local authority” means a county council or a city council;

“Minister” means the Minister for the Environment, Community and Local Government;

“owner”, in relation to a residential property, means—

(a) a person (other than a mortgagee not in possession) who—

(i) in the case of a residential property that is let under a lease or held under a tenancy for a term not exceeding 20 years, is entitled to receive the rent under that lease or tenancy whether in his or her own right or as trustee or agent for another person, or

(ii) in the case of a residential property that is not so let or so held, would, subject to paragraph (b), be so entitled if the residential property were so let or so held, whether in that person’s own right or as trustee or agent for another person,

or

(b) where the property is let under a lease or held under a tenancy for a term exceeding 20 years, the person (other than a mortgagee not in possession) who is the lessee under that lease or tenant under that tenancy;

“prescribed” means prescribed by regulations made by the Minister;

“relevant local authority” means—

(a) in relation to a residential property wholly situated in the functional area of a city council, that city council,

(b) in relation to a residential property wholly situated in the functional area of a county council, that county council, and

(c) in relation to a residential property situated partly in the functional area of a county council and partly in the functional area of another county council or a city council, the local authority in whose functional area the greater part of the residential property, by area, is situated.

2.. Meaning of residential property.

2.— (1) In this Act “residential property” means, subject to subsection (2), a building that is situated in the State and that is occupied, or suitable for occupation, as a separate dwelling, whether or not the occupier shares, or would be entitled to share, in connection therewith, any accommodation, amenity or facility with any other person, and includes—

(a) a house, maisonette, flat or apartment (including the form of accommodation commonly known as a bedsit), and

(b) a building containing a bedroom to which paragraph (e) of subsection (2) applies.

(2) For the purposes of this Act, none of the following is a residential property:

(a) a building—

(i) from which no income has been derived since the building’s construction,

(ii) that, since the building’s construction, has never been used as a dwelling, and

(iii) that forms part of the trading stock of a business;

(b) a building vested in a Minister of the Government, a housing authority (within the meaning of the Act of 1992) or the Health Service Executive;

(c) a building owned by a body standing approved for the purposes of section 6 of the Act of 1992;

(d) a building that—

(i) is wholly used as a dwelling (other than a dwelling that forms part of a mixed hereditament within the meaning of the Local Government (Financial Provisions) Act 1978), and

(ii) in respect of which local authority rates are payable;

(e) a bedroom that is let under a letting arrangement whereby the occupier of the bedroom is entitled to share with any other individual any other accommodation, amenity or facility in the building of which the bedroom forms part.

(3) In this section “business” includes—

(a) the business of a company to which—

(i) an examiner, liquidator or receiver has been appointed under the Companies Acts,

(ii) a statutory receiver has been appointed under the National Asset Management Agency Act 2009, or

(iii) a receiver has been appointed under any other enactment,

and

(b) the business of an individual—

(i) who is a bankrupt or an arranging debtor within the meaning of the Bankruptcy Act 1988, all or part of whose property vests in a receiver, manager or the Official Assignee in Bankruptcy in accordance with that Act, or

(ii) where, in respect of all or part of the trading stock of the business, a statutory receiver has been appointed under the National Asset Management Agency Act 2009.

3.. Household charge on certain residential property.

3.— (1) In the year 2012 and in each subsequent year thereafter, each person who, on the liability date of the year concerned, is the owner of a residential property shall, subject to this Act, pay to the relevant local authority the sum (in this Act referred to as a “household charge”) specified in accordance with this section.

(2) The sum specified in accordance with this section shall be—

(a) €100, or

(b) where a sum stands prescribed for the time being under subsection (3), that sum.

(3) The Minister may from time to time review the sum specified in accordance with this section and, having regard to any change in the consumer price index—

(a) since the commencement of this section, or

(b) where a sum stands prescribed for the time being under this subsection, since the date on which that sum was prescribed,

prescribe such sum for the purposes of subsection (2) as the Minister considers appropriate, and a sum so prescribed shall stand specified in accordance with this section from the liability date immediately following the date on which the sum is so prescribed.

(4) Where a residential property is owned by two or more persons, those persons shall be jointly and severally liable to pay the household charge in respect of that property to the relevant local authority.

(5) A household charge shall be paid to the relevant local authority in accordance with section 5.

(6) In this section “change in the consumer price index” means the difference between—

(a) the All Items Consumer Price Index number last published by the Central Statistics Office before—

(i) the commencement of this section, or

(ii) where a sum stands prescribed for the time being under subsection (3), the date on which that sum was prescribed,

and

(b) the All Items Consumer Price Index number most recently published by the Central Statistics Office since such commencement or the prescribing of that sum, as the case may be,

expressed as a percentage of the first-mentioned number.

(7) In this section “prescribe” means prescribe by order.

4.. Exemptions and waivers from household charge.

4.—(1) A person who, on a liability date, is the owner of a residential property shall not, in respect of that residential property, be liable to pay the household charge for the year in which that liability date falls if, on that date—

(a) the residential property is comprised in a discretionary trust (within the meaning of the Act of 2003), or

(b) the said owner is—

(i) a body corporate beneficially entitled in possession, and

(ii) an approved body within the meaning of section 848A (inserted by section 45 of the Finance Act 2001) of the Taxes Consolidation Act 1997.

(2) If—

(a) an individual who is the owner of a residential property is not residing in that property on a liability date by reason of his or her having had to vacate the property due to long term mental or physical infirmity,

(b) immediately before the date on which the individual so vacated that residential property, the residential property was his or her sole or main residence, and

(c) the individual is residing in a property of which he or she is not the owner,

he or she shall not be liable to pay the household charge for the year in which that liability date falls in respect of that residential property.

(3) Where a person who is the sole owner of a residential property dies, the personal representative of the deceased person shall not, in respect of that residential property, be liable to pay the household charge relating to a year in which the liability date falls after the date of death of the deceased person and before the date of issue of a grant of representation to the estate of the deceased person.

(4) A person who, on a liability date, is the owner of a residential property shall, in respect of that residential property, be entitled to a waiver from payment of the household charge relating to—

(a) the year in which the liability date falls if, on that date, he or she is entitled to payment of a supplement referred to in subsection (5) of section 198 of the Act of 2005 towards the amount of mortgage interest payable by him or her in respect of that property, or

(b) the year 2012 and the year 2013 if, on the liability date for the year concerned, the residential property is situated in an unfinished housing estate.

(5) The Minister shall not prescribe a list for the purposes of this section unless he or she is satisfied that each of the developments specified in the list is incomplete to a substantial extent, and the Minister shall, for the purpose of so satisfying himself or herself, have regard to all relevant circumstances, including—

(a) the state of completion of roads, footpaths and public lighting facilities in the development,

(b) the state of completion of piped water and sewerage facilities within the development,

(c) the state of completion of open spaces or similar amenities within the development,

(d) the extent to which the development complies with the terms of any planning permission applicable to it,

(e) the extent to which the development complies with the provisions of the Building Control Acts 1990 and 2007,

(f) the provisions of the Local Government (Sanitary Services) Act 1964 as they pertain to dangerous places and dangerous structures within the meaning of that Act,

(g) the extent to which roads, open spaces, car parks, sewers, watermains, drains or other public facilities in the development have been taken in charge by the local authority concerned, and

(h) where there is an agreement with the local authority concerned relating to the maintenance of roads, open spaces, car parks, sewers, watermains, drains or other public facilities in the development, the extent to which there has been compliance with the conditions for maintenance under the agreement.

(6) In this section—

“long term mental or physical infirmity” means an infirmity suffered by a person—

(a) certified by a registered medical practitioner, and

(b) which required the person to vacate, for a continuous period of more than 12 months, the property in which he or she had been dwelling;

“unfinished housing estate” means a development of two or more buildings, for the time being specified in a list prescribed for the purposes of this section.

5.. Declaration of liability and payment of household charge.

5.— (1) The owner of a residential property who, on a liability date, is liable to pay a household charge to a relevant local authority, or is entitled to a waiver from payment of a household charge under subsection (4) of section 4, in respect of the year in which that liability date falls, shall make and provide to the relevant local authority a declaration stating that he or she is so liable or so entitled, as the case may be.

(2) A declaration referred to in subsection (1) shall—

(a) be in such form and contain such information as may be prescribed,

(b) be provided to the relevant local authority on or before such date as may be prescribed, and

(c) in the case of a person who is liable to pay a household charge, be accompanied by payment, effected in accordance with subsection (3), of the household charge in respect of the residential property concerned.

(3) Payment of the household charge in respect of a residential property shall, at the option of the owner of the property concerned, be effected by—

(a)(i) a single payment made on or before such date as may be prescribed, or

(ii) the payment of instalments—

(I) of such amounts, and

(II) to be paid on or before such dates,

as may be prescribed, provided that if any instalment is not paid in full and on time, the full outstanding balance of the household charge becomes immediately due,

and

(b) by such means as may be prescribed.

(4) A person who contravenes subsection (1)or (2) shall be guilty of an offence and shall be liable on summary conviction to a class C fine.

(5) A person who, in purported compliance with subsection (1) or (2), provides information to a local authority that is false or misleading in a material respect shall be guilty of an offence and shall be liable on summary conviction to a class C fine.

(6) A person who is convicted of an offence under this section shall, on each day on which the contravention of which that offence consists is continued by the person after his or her having been so convicted, be guilty of an offence and shall be liable on summary conviction to a fine not exceeding €100.

6.. Provision of information in relation to residential property.

6.— (1) The owner of a residential property who, on a liability date, is liable to pay a household charge to a relevant local authority, or is entitled to a waiver from payment of a household charge under subsection (4) of section 4, in respect of the year in which that liability date falls, shall, before the expiration of such period as may be prescribed, make and provide to that local authority a statement in writing containing such information relating to the residential property concerned as may be prescribed for the purpose of enabling the Minister to prepare and maintain a database of residential properties in the State containing details of accommodation, facilities and services available in respect of such properties.

(2) A statement under this section shall be in such form as may be prescribed.

(3) A person who contravenes subsection (1)or (2) shall be guilty of an offence and shall be liable on summary conviction to a class C fine.

7.. Late payment fee and late payment interest.

7.— (1) The owner of a residential property who fails to pay a household charge or an instalment of a household charge in accordance with this Act shall, subject to subsection (3), in addition to his or her being liable to pay the amount outstanding of the household charge, be liable to pay to the relevant local authority—

(a) a fee (in this Act referred to as a “late payment fee”) equal to—

(i) in the case of a household charge paid not later than 6 months after the date (in this section referred to as the “due date”)—

(I) prescribed under section 5(3)(a)(i) for payment of the household charge, or

(II) prescribed under section 5(3)(a)(ii) for payment of an instalment of the household charge,

10 per cent of the amount outstanding in respect of the unpaid household charge,

(ii) in the case of a household charge paid later than 6 months and not later than 12 months after the due date, 20 per cent of the amount outstanding in respect of the unpaid household charge, or

(iii) in the case of a household charge paid later than 12 months after the due date, 30 per cent of the amount outstanding in respect of the unpaid household charge,

and

(b) interest (in this Act referred to as “late payment interest”) on the amount outstanding in respect of the unpaid household charge, calculated at the rate of 1 per cent per month or part of a month from the due date, until payment of the household charge has been made.

(2) Payment of a late payment fee and late payment interest shall be effected by such means as may be prescribed.

(3) Where a person who is the sole owner of a residential property dies and, at the date of his or her death, a household charge, a late payment fee, late payment interest or any part of such charge, fee or interest remains unpaid in relation to that property, no further late payment fee or late payment interest shall be payable in accordance with subsection (1) in relation to that property until a grant of representation to the estate of the deceased person issues to the personal representative of such deceased person.

(4) The personal representative of a deceased person shall, as soon as a grant of representation to the estate of the deceased person issues to him or her, be liable to pay to the relevant local authority the full amount due and owing by the deceased, at the date of his or her death, in respect of a household charge and related late payment fee and late payment interest, which said full amount is, in this section, referred to as the “full amount”.