The Valuation Act 2001 provides that commercially operated child care facilities such as play schools, pre-schools, crèches and Montessori schools are liable for rates unless specific criteria for exemption are met.
Schedule 4 of the Valuation Act 2001 outlines the categories of property and the various uses that are deemed to be non rateable under the Act. Paragraph 10, pertaining to education, and paragraph 16, pertaining to charitable purposes, are two areas in that Schedule which may be relevant to the rateability of child care facilities.
In the area of education, under paragraph 10 of Schedule 4, exemption is limited to educational institutions not established and whose affairs are not conducted for making profit or funded wholly or mainly from funds provided by the Exchequer, and which in either case are open to the general public.
Paragraph 16 of Schedule 4 provides exemption for charitable organisations which occupy and use their facilities exclusively for charitable purposes and otherwise than for profit. Consequently, child care facilities established on a profit-generating basis, irrespective of whether they are in receipt of public funding, are liable for rates.
The basis of rateable valuation of commercial property, including crèches, is net annual value, NAV, that is, 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 Commissioner of Valuation in the first instance and subsequently to the independent valuation tribunal. There is a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law.