Changes to Commercial Rates Vacancy Allowance

What are Commercial Rates?

Commercial Rates are essentially a property tax on commercial premises. Commercial rates formed approximately 22% of Cavan County Council’s income in 2023. They are not a charge for a specific service. Income generated from rates is used for the provision of a wide range of general services within County Cavan. Rates are the financial contribution business owners and occupiers make to the upkeep and quality of life of the local community.

Income received from rates contributes to a range of services such as:

  • Public Lighting
  • Street Cleaning
  • Roads and Footpath Upkeep
  • Fire Service
  • Parks and Open Spaces
  • Environmental Protection
  • Libraries
  • Heritage, Tourism, Public Amenities and the Arts
  • Community Support and initiatives

Who can be held liable for Commercial Rates?

The person liable for Commercial Rates is the person in actual occupation at the making of the rate for the year.

How are Commercial Rates Calculated?

Your rates are calculated by multiplying the Annual Rate on Valuation (ARV), as determined by the elected members, by the valuation on your property, as determined by the Commissioner of Valuation. Your Commercial Rates can be calculated by reference of the example below:

Please Note: Following the adoption of the 2023 budget the ARV for 2023 is 0.2211

See below for an example of a commercial rates calculation:

€10,000: Rateable Valuation
0.2211: Annual Rate on Valuation for 2023 ('the multiplier')
€10,000 X 0.2211 =€2,211
€2,211 is the commercial rates charge for 2023.

Changes to Vacancy Allowance

At the Statutory Budget Meeting held on 25th November 2022, Cavan County Council passed a resolution that commercially rated properties within its administrative area which are vacant for a period exceeding twelve months on 31st December 2023, will be entitled to a 90% reduction in the full commercial rates charge on the premises. This will mean that the customer will have to pay 10% of their 2023 rates liability even though the property may be vacant and for letting.

To qualify for a 90% reduction in the full commercial rates charged on your property the following criteria must be met:

  • Property must be vacant on the date rates becomes payable for the year in question.
  • Property must be vacant for one of the following reasons:
    o Vacant for letting (not for sale)
    o Vacant for repairs or alterations
    o Vacant pending demolition or re-development