New tax will not affect granny flats

MINISTER FOR the Environment John Gormley said yesterday he would ensure the new €200 tax on second homes and holiday homes would…

MINISTER FOR the Environment John Gormley said yesterday he would ensure the new €200 tax on second homes and holiday homes would not affect people residing in so-called “granny flats”.

Responding for a second day to concerns raised in the Seanad during the debate on the Local Government Charges Bill 2009,

Mr Gormley yesterday said the Bill would give the necessary clarity and reassurance to elderly parents and relatives living in granny flats near to the principal family home.

His department later clarified that no granny flats would be included as long as the person resided there free of charge.

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The Bill, which gives effect to a decision from last October’s budget, proposes a tax of €200 on holiday homes and second homes, including property that has been rented to third parties.

A row which broke out over the tax being levied on mobile homes was resolved only when MrGormley agreed to withdraw the tax for those properties.

The Bill, as revised, passed stages in the Seanad last night without amendment.

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times