Written answers

Tuesday, 23 September 2014

Department of Environment, Community and Local Government

Motor Tax Rates

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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486. To ask the Minister for Environment, Community and Local Government the new regulations in relation to motor tax for commercial vehicles; the measures that must be taken to get such a vehicle taxed, such as a crew cab; if a person needs to be an employer of at least three people; if the law is being applied by all local authorities equally across the country or if the level of implementation differs; if this process is audited; and if he will make a statement on the matter. [35278/14]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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Motor tax is based on the construction and use of a vehicle. In order to qualify for the commercial rate of motor tax, a vehicle must be constructed or adapted for use as a goods vehicle and used solely for the conveyance of goods in the course of trade or business.

The carriage of employees is permitted in a commercial vehicle provided they are employed by the registered owner of the vehicle and the carriage takes place only in the course of their employment. The Roads Act 1920 does not specify the number of employees.

There are no new regulations in relation to the taxation of commercial vehicles. Earlier this year, my predecessor issued a direction to motor tax offices that an existing requirement to remove all seats to the rear of the driver’s seat and to remove rear seat belts and weld over the seat belt holes and anchor points would no longer apply to goods vehicles. However, the goods carrying area of a vehicle is still required to have a capacity equal to or higher than the person-carrying capacity.

Licensing authorities have an obligation under Article 3 of the Road Vehicles (Registration and Licensing)(Amendment) Regulations 1992 to be satisfied that a vehicle is correctly taxed and it is thus open to a motor tax office to seek additional documentation supporting a claim for the goods rate of motor tax. Such documentation may include a certificate of commercial insurance or evidence of registration for VAT purposes or, at the discretion of the licensing authority concerned, any other appropriate documentation that would indicate that the applicant is in trade or business. It is up to the individual concerned to provide whatever evidence is required by the licensing authority in order for it to be satisfied that the applicant is entitled to the goods rate of motor tax, which is effectively a concessionary rate.

In addition to the primary and secondary legislation governing the motor tax system, it is open to me as minister, to issue such directions to licensing authorities as are considered necessary for securing uniformity of administration and it is the duty of licensing authorities to comply with any directions so given.

All local authority motor tax offices are subject to an annual audit by the Local Government Audit Service.

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