ICAI News - 6th July 2009

Mon, Jul 6, 2009

This Bill, to impose a €200 annual charge on residential property which is not the principal private residence of the owner, continues through the Oireachtas. Committee Stage Amendments include an exemption for mobile homes.

According to the Minister for the Environment during the debate "Those on fixed foundations will be deemed to be homes. Anything that can be moved by crane or whatever will be deemed a mobile home."

The Minister also debated with the Senators at Committee Stage the meaning of "habitable". He said "Some of the greatest destruction in the 1950s and 1960s occurred when people removed not only chimneys but also roofs in order to avoid paying rates. The roofs of some fine buildings were removed allowing rain to damage the structure. I hope local authorities will take a practical view of this provision." In relation to payments: "The local authorities set up a project board after the 2009 budget to plan for the introduction of the charge. The Local Government Computer Services Board was asked to design a website, similar in concept to the motor tax on-line website, to accept Internet payments. This site will be up and running in time for the liability date of 31 July 2009."

The original estimate provided in the public domain for the amount to be raised by this new charge was €40m. Senators noted however that according to the Oireachtas Library and Research Service, the system could raise in excess of €97 million.

Amendments were tabled which would have the effect of putting the responsibility for the collection of the charge on the Revenue Commissioners, but these have not been passed.

 

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