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Commercial Rates

Dáil Éireann Debate, Tuesday - 11 February 2014

Tuesday, 11 February 2014

Questions (237, 238)

Barry Cowen

Question:

237. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform if he has assessed the impact of commercial rate charges on sporting organisations' grounds; the measures he proposes to address the issue; and if he will make a statement on the matter. [6209/14]

View answer

Barry Cowen

Question:

238. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform if he will provide a total and county breakdown of commercial rates paid by sporting organisations from 2010 to 2013; and if he will make a statement on the matter. [6210/14]

View answer

Written answers

I propose to take Questions Nos. 237 and 238 together.

At the outset, I might clarify that the Commissioner of Valuation is independent in the exercise of his duties under the Valuation Act, 2001 and the making of valuations for rating purposes is his sole prerogative. The statute does not accord me, as Minister for Public Expenditure and Reform, any function in this regard.

The Valuation Act, 2001 provides for the exemption from rates of land that is developed for sport such as playing pitches, land on golf courses, tennis courts, etc. In relation to the valuation of buildings occupied by a club affiliated to a sporting organisation, the position is that the 2001 Act also provides for the exemption from rates of "Community Halls". To be classified as a Community Hall, the premises needs to be used for purposes which are not for profit or gain and involve participation by inhabitants of the locality generally and are used for purposes which are of a recreational or otherwise of a social nature. Many sports clubs/organisations achieve exemption from rates of their property under this provision. However, the Valuation Act, 2001 specifically excludes from this provision, the premises of a club registered under the Registration of Clubs (Ireland) Act, 1904. Therefore, the premises of such a registered club are rateable, which essentially means that clubs licensed to sell alcohol are rateable.  This provision has the effect of making the entire premises occupied by the club rateable and not just that part of the premises normally used for the sale of alcohol. The premises of a club are not rateable after it ceases to be registered under the Registration of Clubs (Ireland) Act, 1904.

The sale of alcohol is a commercial activity and a licensed sports club is competing with other commercial licensed premises, all of which are rateable.  Therefore, in equity, exemption from rates can only be achieved by the cessation of the club's registration under the 1904 Act.

Regarding the measures to address issues in relation to the valuation of sports grounds and buildings, the statutory mechanism available to the Commissioner and, which is used to maintain the existing valuation lists on which the local authority rates are based, is known as Revision of Valuation.  The Revision procedures, set out in Part 6 of the Valuation Act 2001, are used to add new properties to the list, to amend the valuation of altered properties and to remove demolished or defunct properties from the list. The valuations of non-domestic properties, including those occupied by sports clubs, are determined by reference to the values of similar type of properties in the same local authority area to ensure, in so far as it is possible, that they are all treated in a fair and equitable manner.

In relation to individual cases, the well-established statutory revision process conducted by the Valuation Office includes an extensive appeal system which in the first instance, provides that where a ratepayer, if he or she considers that the proposed valuation of a premises or any details contained in a Proposed Valuation Certificate are incorrect, can make representations to the Valuation Manager for a review.

The "representations" to the Valuation Office must be made within 28 days of the date of issue of the said Certificate and, if taking this course, an occupier must provide clear reasons and supporting evidence to justify any proposed changes, including an alternative valuation. The result of the review following representations will be notified to the occupier of the premises by way of a final Certificate of Valuation. The occupier has a right to appeal their valuation to the Commissioner of Valuation and, if still dissatisfied following the Commissioner's decision, may subsequently appeal to the Valuation Tribunal. It is an independent body set up for the purpose of settling disputed valuations between the Commissioner of Valuation and the ratepayers or local authorities.  There is also a further appeal available to the Higher Courts but only on a point of law.

With regard to the payment of commercial rates by sporting organisations, the position is that, under Irish law, there is a distinct separation of function between the valuation of rateable property and the setting and collection of commercial rates. The amount of rates payable by a ratepayer in any calendar year is a product of the valuation multiplied by the annual rate of valuation (ARV).  As already mentioned, the valuation of commercial properties for rating purposes, including the valuation of property occupied by sporting organisations, is the responsibility of the Valuation Office which has no function in the collection of rates. This is the responsibility of individual local authorities. Therefore the Valuation Office would not be in a position to furnish details of the rates paid by sporting organisations on a nationwide basis. These  details would be a matter for the local authorities concerned.

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