Written answers

Tuesday, 30 September 2014

Department of Public Expenditure and Reform

Commercial Rates Valuation Process

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

220. To ask the Minister for Public Expenditure and Reform his views on reclassifying pre school facilities as educational so that they can have similar status for commercial rates as the education sector. [36834/14]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The Valuation Act, 2001 provides that all buildings used or developed for any purpose are rateable unless expressly exempted under Schedule 4 of the Act. 

The Act is quite specific in relation to the exemptions that can be implemented by the Commissioner of Valuation. These are set out in Schedule 4 of the Act and there is no discretion to grant exemptions not covered by Schedule 4. Buildings which qualify for exemption from rates under the provisions of Schedule 4 would principally include those used for public worship, education and health-care provided on a not-for-profit basis and charitable purposes.

Certain pre-school facilities can be exempt from rates under the terms of paragraph 16 of Schedule 4 of the Valuation Act, 2001, where that organisation is a charitable organisation, that uses its property exclusively for charitable purposes and otherwise than for private profit. The organisation claiming charitable status for the purpose of qualifying for exemption from rates must comply with the definition of "charitable organisation" as stated in PART 1 section 3 of the Valuation Act, 2001.

Similarly, certain pre-school facilities can be exempt from rates where the conditions detailed in paragraph 10 of Schedule 4 are met which in summary are:

1. It must be occupied by an educational institution

2. It must be used exclusively for the provision of educational services

3. Otherwise than for private profit;(a) the institution must not be established or operated for the purposes of making a private profit orbe financed wholly or mainly from State funds and (b) The services in question must be available to the general public with or without a charge being levied.

Re-classifying pre-school facilities as educational under Schedule 4 of the Valuation Act 2001 would not in itself result in these facilities no longer being liable for rates.

As a matter of course, the Valuation Office examines all claimant cases on their individual merits by reference to the relevant statutory provisions governing the operation of the Valuation Act as it relates to child-care facilities and all other categories of properties.

Private childcare facilities form part of the rateable valuation base on a nationwide basis. I have no plans to provide for special treatment of these facilities by their exemption from rateability under the Valuation (Amendment) (No 2) Bill as such a change would be quickly followed  by demands for similar treatment from other interests involved in the provision of useful services, which in equity, would be difficult to resist. The process could thus substantially reduce local authority revenues, which would have to be made good by imposing a corresponding increase on the remaining ratepayers.

Comments

No comments

Log in or join to post a public comment.