Vol. 576 No. 1
161 Mr. Eamon Ryan asked the Minister for Finance the regulations governing the designation of electric bicycles with regard to tax and insurance; and the criteria used in the decision regarding whether an electric bicycle is subject to duty or requires insurance cover for its use. [29079/03]
The Road Traffic Act 1961 includes in the definition of a "mechanically propelled vehicle" both "a bicycle . . . with an attachment for propelling it by mechanical power" and "a vehicle the means of propulsion of which is electrical or partly electrical and partly mechanical". A mechanically propelled vehicle is required to comply with the various provisions of the Act which, among other things, require the user to have third party insurance in a public place. The vehicle also has to comply with the provisions of the Road Traffic (Construction, Equipment and Use of Vehicles) Regulations and the Road Traffic (Lighting of Vehicles) Regulations. Electric bicycles are also subject to motor tax.
As regards vehicle registration tax, VRT, section 130 of the Finance Act 1992 defines a "mechanically propelled vehicle" as: a vehicle intended or adapted for propulsion by a mechanical means, including
(a) a bicycle, tricycle or quadricycle propelled by an engine or motor or with an attachment for propelling it by mechanical power, whether or not the attachment is being used, a moped, a scooter and an autocycle, and
(b) a vehicle the means of propulsion of which is electrical or partly electrical and partly mechanical.
The effect of this section is that electric bicycles are liable to VRT and, as such, must be presented at a Vehicle Registration Office for registration. The VRT rates of duty which are payable on the registration of such vehicles are: €2 per cubic centimetre where the cubic capacity of an engine does not exceed 350 cc; €1 per cubic centimetre in respect of each additional cubic centimetre in excess of 350 cc.
162 Mr. Gilmore asked the Minister for Finance the position regarding proposals to bring mná tí (householders) who cater for language students on courses at Irish summer colleges into the tax system; if it is intended that they will be based on a PAYE or self-employed system; and if he will make a statement on the matter. [29086/03]
As was indicated to the House in replies to parliamentary questions on 27 May 2003 and 25 June 2003 by the Minister for Community, Rural and Gaeltacht Affairs, this matter is being considered in the context of budget 2004 and the Finance Bill 2004.
As the Deputy will be aware, it is not my practice in the run-up to the annual budget to comment on what may or may not be contained in that budget.
Question No. 163 answered with Question No. 160.
164 Mr. Kehoe asked the Minister for Finance if there is tax relief available to a private individual wishing to purchase a property to be used as a music school; and if he will make a statement on the matter. [29124/03]
I am advised by the Revenue Commissioners that there is no tax relief available for the purchase of a property to be used as a music school per se. However, tax relief may be available under one of the general property incentive schemes depending on where the property is situated and the circumstances of the case. Tax relief is available for certain commercial properties under the urban renewal, town renewal, rural renewal and living over the shop schemes.
To qualify for tax relief the local authority must certify that the particular development is consistent with the aims, objectives and criteria of the particular scheme. This certification condition does not arise in the rural renewal scheme, which scheme applies to the entire counties of Leitrim and Longford and to certain areas of Roscommon, Sligo and Cavan.
