A test case over whether some bed-and-breakfast premises are liable for rates was heard by the High Court yesterday. Mr Justice Ó Caoimh reserved judgment.
Mr Tony Aston SC said that this was an issue which was of considerable importance and would have consequences beyond the case in court.
The proceedings arise from a decision of District Judge Mary Devins, who dismissed a claim for arrears of rates served by a rate collector, Mr Liam Slattery, on Bernadette Flynn, trading as "Willow House", Upper Drumcondra Road, Dublin. The amount sought was IR1,823.60.
When the matter was before the District Court, Ms Flynn claimed that her premises was a "domestic hereditament" (domestic dwellinghouse) as defined by Section 1 of the Local Government (Financial Provisions) Act, 1978, and that municipal rates were not payable.
Ms Flynn has a terraced dwellinghouse containing 10 bedrooms, four for Ms Flynn and her family, who permanently reside there, and six for bed-and-breakfast business. There is a separate dining room, sitting room and car spaces for paying guests. The premises is approved by Bord Fáilte.
The rate collector argued that the premises constituted a "mixed hereditament", as defined in the 1978 Act, as it was used partly as a dwelling and partly for bed-and-breakfast business. It was claimed that such a premises was allowed a one-third remission of rates and was liable for the other two-thirds.
Judge Devins held that the clear meaning of the 1978 Act was: that if lodgings were registered under the Tourist Traffic Acts, such lodgings could not rely on the "shield" against liability for rates contained in the 1978 Act. She also found, as the premises was not registered and was a bed-and-breakfast rather than a guesthouse, that it could not be described as a "mixed hereditament". While there might be a lacuna in the Act, the benefit of the doubt had to go to Ms Flynn, the judge said.