Dáil Éireann Debate, Wednesday - 16 January 2013
105. Deputy Brendan Griffin asked the Minister for Finance the position in relation to establishing a property tax rate for a family who live in a small family run hotel, which has a residential quarter as part of the hotel; the way is it anticipated that the liability will be calculated; and if he will make a statement on the matter. [57979/12]
View answerI am informed by the Revenue Commissioners that it would not be appropriate to give a definitive reply based on the information supplied by the Deputy.
Local Property Tax is a self-assessment tax. It is chargeable in respect of a building, or a part of a building that is in use as, or that is suitable for use as, a residence. However, it is not chargeable on the part of a building in respect of which commercial rates are payable.
If the residential part of the hotel is not included for the purpose of commercial rates, the amount of local property tax will be based on the “chargeable value” of that part. This is essentially the price that the unencumbered fee simple of a residential property, or the residential part of a property, might be expected to fetch on a sale on the open market were that property to be sold on the valuation date of 1 May 2013, in a manner that would secure the best possible price for the property. Such an open market sale would also require the retention of the benefit of any access to the property that would have existed prior to the sale.
In this case, the owner of the hotel will be required to establish the chargeable value of the residential part of the hotel. If the value is less than €1m, the local property tax liability will then depend on the chargeable band into which this chargeable value falls and tax will be charged at 0.18% on the midpoint of the relevant band. If the value is over €1 m, the tax will be charged at 0.18% on the first €1 m in value and 0.25% on any balance over €1m.
