Seán Fleming (Laois-Offaly, Fianna Fail)
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292. To ask the Minister for Public Expenditure and Reform the difference between the approach to commercial rates for hair salons versus premises that are being used as an educational establishment for persons in the hairdressing business; if there is an exemption from commercial rates for educational establishments; if this applies to educational establishments that are providing their educational services on a commercial basis; and if he will make a statement on the matter. [36322/15]

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.

Paragraph 10 of Schedule 4 has an exemption for schools, colleges, universities, institutes of technology or other educational institutions, and that paragraph lays down the conditions for qualifying for the exemption which include that the property be used exclusively for the provision of educational services and otherwise than for private profit.  Educational services provided on a commercial basis are rateable.

The decision whether or not to grant exemption in individual cases is a matter for the Valuation Office and I have no role in the matter. It will depend on the particular circumstances of the property and, without knowing the detail, it is not possible to give the Deputy a more precise answer. I have  been informed by the Valuation Office that there may be a number of instances where education/training in hairdressing or other skills is provided on a not-for-profit or charitable basis and may, taking all other circumstances into consideration, qualify for exemption.

The rateable valuation of all commercial property is based on net annual value (NAV) i.e. the rental value of the property.  Any ratepayer dissatisfied with the rateability of a property, the valuation assessed on a particular property or the method of calculation can appeal to the Valuation Tribunal, an independent body set up for such purposes.  There is also a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law.