Pat Deering (Carlow-Kilkenny, Fine Gael)
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223. To ask the Minister for Public Expenditure and Reform if private fee paying schools and private nursing homes are subject to commercial rates; and if so on what basis is the rate calculated. [37033/14]

Brendan Howlin (Wexford, Labour)
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The Valuation Act, 2001 provides in Schedule 3, Sections 1(a) and (b) that all buildings and lands used or developed for any purpose including constructions affixed thereto are rateable. The basic premise under the Act is that all interests (including buildings) and all developed land are rateable unless expressly exempted under Schedule 4.

In general, the Act maintains the long-standing position that all commercial facilities established for the purpose of making a private profit are liable for rates.

Certain fee charging schools may be exempt from rates by virtue of the provisions of Schedule 4 of the Act. Specifically, a property occupied by a school and used for educational purposes is entitled to exemption from rates if all of the conditions detailed in paragraph 10 of Schedule 4 are met, regardless of whether a fee is payable or not. In summary, the conditions 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.

Nursing homes established and operated for the purpose of making a private profit are rateable under the Valuation Act. 

The rateable valuation of all commercial property is based on net annual value (NAV) i.e. the estimated rental value of the property as defined in Section 48 of the Valuation Act.