Landlords should have to pay rates on their properties because they are using them for commercial purposes by making "vast amounts of money" from tenants, the Dail was told. They were making "tens of millions" but were not paying rates, said Mr Tony Gregory (Ind, Dublin Central).
He also said it was "ludicrous" that the Government did not pay rates for State buildings in Dublin at today's valuation, which would amount to around £14 million a year, the amount "required for the running of the waste management services".
He was supported by a number of Government backbenchers, including Mr Noel Ahern (FF, Dublin, North West) who said it was "illogical" that rates were not charged on B&B accommodation.
People always seemed to think about B&B accommodation "in terms of Mrs Murphy on the Dublin road who has two or three rooms and who takes in a few lodgers on a couple of weekends in July and August", said Mr Ahern. The profile of residential accommodation had changed significantly. "Someone in Dublin may also have five rooms but may let them out 52 weeks of the year," he said. There was also the issue of "apart-hotels, commercial outlets and large commercial operations".
The deputies were speaking during a debate on the Valuation Bill introduced by Minister of State for Finance Mr Martin Cullen, who confirmed that State buildings, B&B and self-catering holiday accommodation would not be subject to rates. Mr Cullen agreed there might be merit on "equity" grounds for including this type of accommodation but there were significant practical difficulties in doing so, "in particular the absence of a compulsory national licensing or registration system for such premises".
The Bill, which is the first comprehensive valuation legislation since the 1850s, aims to modernise the operation of valuing property, remove anomalies and to make the system more transparent and equitable for the ratepayer.
Mr Gregory pointed out that Dublin City Council recently faced abolition by the Minister for the Environment because it could not meet the estimates necessary to run the city. There was a proliferation of "multiple occupancy dwellings owned by private interest and private landlords, making vast amounts of money" Mr Gregory said. "They are running businesses and using properties for commercial purposes - making money from tenants."
