The Valuation Act, 2001, which came into effect on 2 May, 2002, provides that all buildings used or developed for any purpose including constructions affixed thereto are rateable unless expressly exempt under Schedule 4 of the Act. Charitable organisations providing childcare facilities which are used exclusively for charitable purposes and otherwise than for private profits are excluded from liability for commercial rates. However, the Act maintains the long-standing position that commercial facilities, including play schools, pre-schools, crèches and Montessori schools, which are operated on a commercial for-profit basis are liable for rates.
I have no plans to provide for special treatment of private childcare facilities under the Valuation Act which provides that all buildings used for commercial enterprises are valued in a fair and equitable manner. Exceptions to this key principle would be quickly followed by demands for similar treatment from other interests 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 rate payers.
I should point out that the Commissioner of Valuation is independent in the exercise of his duties under the Valuation Act, 2001.
