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Home > Dail Eireann debate. Written answer 100 - Commercial rates calculations [23298/17] [Alcohol].

[Oireachtas] Dail Eireann debate. Written answer 100 - Commercial rates calculations [23298/17] [Alcohol]. (16 May 2017)

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100. Deputy Robert Troy asked the Tánaiste and Minister for Justice and Equality if there will be a provision to ensure it is only the bar area that is calculated for commercial rates in sporting complexes in which a bar is located; and if she will make a statement on the matter. [23298/17]

 

Tánaiste and Minister for Justice and Equality (Deputy Frances Fitzgerald): I wish to advise the Deputy that the Valuation Office is responsible for the provision of valuations on which commercial rates are based. The Commissioner of Valuation is independent in the exercise of his statutory functions and I as Minister for Justice and Equality have no role in the matter. Regarding the valuation for rating of bar areas in sporting complexes, historically the premises of sports clubs which were registered under the Registration of Clubs (Ireland) Act 1904, i.e. clubs licensed to sell alcohol, were rateable in their entirety. However, the Valuation (Amendment) Act 2015 introduced a new provision to the Valuation Act 2001 at Schedule 4, paragraph 4B, to provide an exemption from rates in respect of the buildings in such clubs and complexes which are used exclusively for community sport on a not-for-profit basis. Such buildings would typically include the club's meeting rooms, machinery sheds, equipment storage areas, administrative offices, changing rooms and gymnasia.

 

Following this change to the valuation legislation, community sports clubs are now only liable for rates on parts of buildings that are used for the generation of income on a commercial basis. Consequently, the following parts of a premises of a club registered under the Registration of Clubs (Ireland) Act 1904 remain rateable:

(i) any part of the premises used for the sale, or consumption of alcohol on a regular, or occasional, basis;

(ii) any part of the premises used directly, or indirectly, in the generation of income for the club, or other persons, other than:

- income derived from club membership fees,

- community organisations using the building for community purposes;

- participants in community sport using the building for the purposes of community sport.

 

Therefore, the parts of the premises of sporting complexes which would be rateable would include the following:

- A shop or similar areas reserved for retail or commercial activity;

- Areas used in conjunction with the storage, preparation, sale or consumption of food such as kitchens, dining areas, function rooms and toilets;

- Areas used on a regular or occasional basis for the sale, or consumption of alcohol such as bar areas, function rooms, halls, etc.

- Areas used in connection with the storage of alcohol or other produce for sale on the premises.

 

In summary, this effectively means that buildings or part thereof within the sporting complex that are used for the sale of alcohol or food, retail outlets, etc. are rated but buildings used exclusively for community sport are exempt. If a sport club's only commercial facility is the bar then it is only the bar and ancillary features that are rated. As a result of this exemption provided for in the Valuation (Amendment) Act, 2015, which became effective on 8 June 2015, I understand that the Valuation Office has been revising the valuations of registered sports club premises to ensure that only the commercial part of such premises are rateable and that buildings used exclusively for community sport are exempt. Any sports club which is registered under the 1904 Act, and has not yet had its valuation revised to take advantage of the new exemption, may apply to the Valuation Office for a revision of the valuation. The application may be made using the specified form which is available on the Valuation Office's website, www.valoff.ie.

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