Reply received today to my query to John Gormleys Office.
7 October, 2009. Dear Mr. XXXXX, I have been asked by Mr. John Gormley, T.D., Minister for the Environment, Heritage and Local Government, to refer further to your recent correspondence in connection with the charge of €200 on non-principal private residences. The Government has decided to broaden the revenue base of local authorities through the introduction of this charge on non-principal private residences, which is set at €200 per dwelling and is being levied and collected by local authorities. It will be used to support the provision of local services and the income from the charge will be retained by the individual local authorities that collect it. The Local Government (Charges) Act 2009, which sets out the detail of the €200 charge on non-principal private residences, is structured with a starting position of a universal liability for residential property in respect of the charge. It goes on to exempt certain buildings and owners from this liability, the most important exemption being where a property is occupied by the owner as his or her sole or main residence on the liability date. An exemption is also included for property in which a relative of the owner is living rent-free, as long as that residence is on the same property or within two kilometres of the owner’s main residence. This provision was intended principally to cater for situations in which accommodation would be provided for an elderly parent by a son or daughter in order that the parent concerned can retain a measure of independent living for as long as possible. In drafting the provision, account was taken of the legislation that applies in relation to the home carer tax credit. The criteria of “on the same property” or “within two kilometres” are consistent with the fact that one party is meant, in some measure at least, to be caring for the other – something which cannot reasonably be done if they live long distances apart. The “two kilometres” provision follows precedent from the Revenue Commissioners’ legislation dealing with the home carer tax credit. Yours sincerely, ________________