Tony Killeen
Ceist:276 Mr. Killeen asked the Minister for Tourism and Trade the impact, if any, on accommodation costs of the proposal to make all forms of accommodation subject to commercial rates. [22125/96]
Written Answers. - Accommodation Costs.
The Minister has been advised by the Department of Finance that if, for example, a bed and breakfast operation were to be made liable to commercial rates, the relevant rate would be applied to the rateable valuation in respect of the property, or element of the property, used for the operation. The rateable valuation of an individual property is determined by reference to its net annual value, in this case, its net annual rent. The interaction of the rate in the pound for the rating district in which a bed and breakfast was located with the rateable valuation for the same bed and breakfast operation would determine its rates liability.
It is not possible to estimate impact on accommodation costs if all forms of accommodation were made subject to commercial rates as proposed in the report referred to, because there are too many other variables e.g. quantum of rate bills, competitive and market forces etc., to be considered to allow for any form of reliable estimate to be made at this stage.