Note to Early Learning and Care Services on Commercial Rates
The Department of Children and Youth Affairs would like to remind early learning and care facilities of the following in respect of commercial rates
The valuation/rating code as it applies to early learning and care facilities was last altered following the commencement of the Valuation (Amendment) Act 2015 in June 2015.
In summary, childcare facilities fall into three groups, of which one is considered to be rateable:
- Group 1 type facilities are exempt by way of Paragraph 22 Schedule 4 of the Valuation Acts 2001- 2015 which provides for the exemption of a building used exclusively for the provision of early childhood care and education and occupied by a body which is not established and the affairs of which are not conducted for the purpose of making a private profit i.e. a not for profit organisation.
This means that community childcare facilities are generally exempt from commercial rates by virtue of the fact that they operate on a not-for-profit basis.
- Group 2 type facilities are exempt under Paragraph 10 Schedule 4 of the Valuation Acts 2001- 2015 on the basis that the facility is used exclusively for the provision of educational services (ECCE only) and otherwise than for private profit.
This means that facilities who provide the Early Childhood Care and Education Scheme (ECCE) only are exempt from commercial rates.
- Group 3 type facilities are essentially businesses established for the purpose of making a private profit and are therefore rateable.
We understand that there may also be a number of early learning and care facilities which are exempt from commercial rates under Paragraph 16 Schedule 4 of the Valuation Acts 2001- 2015 on the basis that the facility is occupied by a charitable organisation and used exclusively by that body for charitable purposes.
Issues concerning commercial rates are the responsibility of the Commissioner of Valuation, who is the head of the Valuation Office, and is independent in carrying out his functions under the Valuation Acts. The Valuation Office falls under the aegis of the Department of Housing, Planning and Local Government.
The Department of Children and Youth Affairs has no role in determining or advising on the rateability or otherwise of properties.
If you have any queries in relation to commercial rates or the rateability of your childcare facility please contact the Valuation Office, Block 2, Irish Life Centre, Abbey Street Lower, Dublin 1, D01 E9XO. Telephone 01 8171033. E-mail firstname.lastname@example.org. ”