Dáil Éireann Debate, Wednesday - 6 April 2016
343. Deputy Pat Deering asked the Minister for Justice and Equality why local authorities are charging rates to charity shops, whether they are run as a business or by a small voluntary group; and if she will consider a dual system similar to that implemented for child care facilities where community projects are excluded. [5907/16]
Amharc ar fhreagraThe Valuation Act 2001 provides that all buildings used or developed for any purpose are rateable unless expressly exempted under Schedule 4 of the Act. Paragraph 16(a) of Schedule 4 is the relevant provision in this case.
The position under the Valuation Acts regarding claims from whatever source for exemption on charitable grounds, requires consideration of two issues. In order for a property occupied by an organisation to be exempt from rates under the terms of Schedule 4 - Paragraph 16(a) of the Act, that organisation must firstly, be a "charitable organisation" and secondly, the use of land, buildings or part thereof must be "exclusively for charitable purposes and otherwise than for private profit".
The definition of a "charitable organisation" in the context of Paragraph 16(a) of Schedule 4 was originally set out in section 3 of the Valuation Act 2001. This definition has been repealed and a new definition has been substituted following implementation of the Valuation (Amendment) Act 2015. As a result. "charitable organisation" now means a charitable organisation within the meaning of Section 2 of the Charities Act 2009 that is entered in the register of charitable organisations pursuant to Part 3 of that Act. This has simplified the law in this particular regard.
However, the other element to be satisfied under paragraph 16(a) of Schedule 4 has not been amended and still remains in place. Accordingly, the requirement that the land or building in question be used exclusively for charitable purposes, and otherwise than for private profit, continues in force.
Shops operated by charitable organisations are rateable on the basis that conducting retail activity is not considered to be "exclusively for charitable purposes" within the meaning of the legislation. This is in line with established case law. As a result, a distinction has been drawn between properties which are operated by charitable organisations and used exclusively for charitable purposes and properties occupied by charitable organisations which are not used exclusively for charitable purposes, albeit where the proceeds may be used exclusively for charitable purposes.
With regard to the Deputy's reference to childcare facilities, the position is that certain childcare facilities provided on a not-for-profit community basis are exempt from rates under the Valuation Acts 2001 to 2015. However, a shop operated as a business or by a voluntary group is a retail activity in competition with other retail outlets and is therefore rateable and forms part of the commercial valuation base in all rating authority areas.
If an occupier is dissatisfied with a determination of the Valuation Office, including as to whether a particular property is or is not rateable, there are a number of avenues of redress provided for in the Valuation Acts. Firstly, before a determination is made, there is a right to make representations to the Valuation Office in relation to a proposed valuation. Following consideration of the representations and determination of the valuation, there is a statutory right of appeal to the Valuation Tribunal. Finally, there is a right of appeal to the Higher Courts on a point of law.
