Holiday home levies collected in Mayo should stay in Mayo - Munnelly

At a recent meeting of Mayo County Council, Fine Gael Councilor for the Ballina electoral area Jarlath Munnelly questioned County Manager, Des Mahon, on the introduction of a new €200 levy on houses which are not the owner’s principal residence. This levy was introduced as part of Budget 2009 by the Minister for Finance, Brian Lenihan.

Cllr Munnelly’s question focused on how this scheme was going to be operated, how the levy was going to be collected, and what the financial implications for the council are.

The levy will be used to fund the work of local authorities across Ireland. It will not be charged on houses which are principal residences, but it will be charged on holiday homes, and additional properties which people rent out for investment purposes.

The manager, in a comprehensive response to Cllr Munnelly’s questions, explained that the scheme was to be administered by Mayo County Council, but that the money will be sent to the Department of Environment in Dublin. Discussions had been taking place between county and city managers and the Department of Environment, regarding how the levy will be collected. He stated that he favoured a mechanism for collecting the levy, using existing databases such as the Residential Tenancies Board, who are a statutory agency responsible for the registration of private rented accommodation.

Cllr Munnelly suggested that although he had no problem with a charge being placed on owners of holiday homes in Mayo who lived in other counties or overseas, he claimed that this charge was going to come as a shock to many property owners. “This is another tax, there is no point denying this. I think that there is merit in placing a charge on people who own holiday houses in Mayo; they do not contribute to the county in the same way as people who live here all year round, but they benefit from amenities, such as parks, etc. But with recent increases in taxation, it is tough introducing this levy for everyone who owns a second home.”

The manager confirmed that the introduction of this levy also means that Mayo will receive less from the Department of the Environment in the Local Government Fund next year. This fund is used to finance local government from central tax receipts. The amount Mayo receives will be reduced by the same amount collected from the new levy. Cllr Munnelly criticised this decision. “I think the finances raised from this levy should be retained in Mayo, and it should be in addition to the money received from the Local Government Fund. Local authorities like Mayo are under-funded as it is, and this new levy will create extra work for Mayo County Council, with no extra financial benefit.”

 

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