Noel Ahern (Dublin North West, Fianna Fail)
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Question 108: To ask the Minister for the Environment, Heritage and Local Government the situation in relation to the €200 second home tax; if it applies when a couple have two homes and they are used by family with no rent paid such as the second home used by children attending college and an informal separation of parents, one living in each, both houses jointly owned, separation not legally processed. [32912/09]

Noel Ahern (Dublin North West, Fianna Fail)
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Question 109: To ask the Minister for the Environment, Heritage and Local Government the situation in relation to the recently introduced €200 second home tax; if it applies to a house owned by parents, who already have a main residence, but occupied by an adult son or daughter; if a house which is 50% owned by parents and adult son but occupied by son, if full or half home tax is due; if it applies when a property is jointly owned by parents and adult son or daughter as demanded by financial institutions as parents guaranteed mortgage. [32913/09]

John Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 108 and 109 together.

The Government decided to broaden the revenue base of local authorities by introducing a charge on all non-principal private residences. The charge is set at €200 per dwelling and payment must be made by 30 September 2009. The most important exemption under the Local Government (Charges) Act 2009 is for principal private residences. If a person owns a property other than one that they reside in as their principal private residence, then it may be liable for the charge.

The question refers to cases where parents own a second property and their children occupy that second property as their sole or main residence. Firstly there is a specific exemption in the Act in the case of a property owned by an individual which is less than two kilometres from the principal private residence of that individual, and is occupied rent free by a relative. Secondly, if an individual has a formal exclusive right of residence (free of rent) in a dwelling, then the owner does not meet the definition of 'owner' in the Act, and the property is exempt until such time as the right of residence is extinguished, or the beneficiary of the right dies. If neither of these exemptions apply, the property would, in the example given, be liable to the charge.

Where a residential property is owned by two or more co-owners and any one or more of the co-owners resides in the property as their principal place of residence, then no liability arises in respect of the residential property concerned for any of its co-owners. The co-owner definition includes parents and children, unrelated co-owners and separated couples where a decree of divorce or a decree of judicial separation has been granted in respect of a marriage, as well as separated couples where no judicial recognition has been accorded to the separation agreement.