Criteria
1. Discretionary Rate Relief (DRR) is an optional power Local Authorities have under section 47 of the Local Government Finance Act 1988 to assist charitable and other non profit making organisations to reduce their rate liability in respect of Business Rates. At the present time there is an annual budget provision of £23,460.
2. The Council's Present Policy for Granting Discretionary Rate Relief is:
(a) All future applications for discretionary rate relief be considered on their merits and submission of a report to Cabinet. Currently Cabinet meetings are held on a monthly basis.
(b) The following principles be applied in considering such applications:
- the ratepayer is a charity or trustee for a charity and the property is wholly or mainly used for charitable purposes;
- the organisation should not be established or conducted for profit, and the main objectives should be charitable or otherwise philanthropic or religious, or concerned with education, social welfare, science, literature or the fine arts
- the property is wholly or mainly used for purposes of recreation and all or part of it is occupied for the purposes of a club, society or otherwise not established or conducted for profit
- the financial resources (cash and investments) of organisations are to be taken into account and also the possibility of their obtaining grants from other public bodies; and
- historically the Council has awarded the following;
- Discretionary Rate Relief of 20% where an organisation receives 80% mandatory rate relief.
- Discretionary Rate Relief of 50% where an organisation is not in receipt of mandatory rate relief and do not have a drinks licence.
- Discretionary Rate Relief of 10% where an organisation is not in receipt of mandatory rate relief but hold a drinks licence.
(c) That applications approved in the current year be also approved for the forthcoming year on the same percentage basis, subject to the organisations submitting the appropriate application forms and accounts.
3. From the 1/4/2002 the Government has allowed local authorities to grant 80% mandatory Rate Relief to those sports clubs which have gained charitable status through Sport England, and once this has been obtained a further 20% in discretionary rate relief may be granted, leaving them with no rate liability at all.
4. Contact Joan Curran, Treasury Management Officer, Darlington Borough Council, Corporate Services Department, Room 301, Town Hall, Darlington. DL1 5QT. Tel; 01325 388323 or e-mail: joan.curran@darlington.gov.uk