Olivia Mitchell (Dublin South, Fine Gael)
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Question 67: To ask the Minister for Finance if he will consider, in the context of upcoming budgets, the practice by the Revenue Commissioners of demanding a second home payment from property owners operating multiple bed-sits or apartments within a single building and similarly where the second home fee is being charged on each home in holiday home developments, as both of these sectors are suffering grievously in the current economic conditions; and if he will make a statement on the matter. [7818/11]

Michael Noonan (Limerick City, Fine Gael)
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The charge on non-principal private residences is a matter for the Minister for the Environment, Heritage & Local Government. I understand from his Department that the Government decided in 2009 to broaden the revenue base of local authorities by introducing a charge on all non-principal private residences. The charge is payable by the owners of private rented accommodation, holiday homes and any other residential property that is not the owner's sole or main residence. The Local Government (Charges) Act 2009, which sets out the detail of the charge, defines residential property as including flats, apartments and bedsits. The €200 charge is payable on each unit of accommodation used, or suitable for use as a separate dwelling, whether or not any amenity or facility in the building or premises may be shared. The owner of a house split into a number of bedsits is thus liable for the charge on each unit in that house.

While there is no specific exemption from the charge for commercial holiday home developments, the Local Government (Charges) Act 2009 makes it clear that a property will be exempt from the charge if it is liable for commercial rates.

The view was taken when the Bill was being debated in the Oireachtas that this was the fairest approach.

There are no plans to amend the charge on non-principal private residences in either respect presently.