Tax on second homes to earn €500,000 for Ennis

ENNIS is expected to benefit from half a million euro next year as a result of the tax on second homes. The non-principal private residence charge, introduced in 2009, has proven to be a “significant source” of income for local authorities according to town manager Ger Dollard, as he outlined Ennis Town Council’s budget for 2012 at a meeting of councillors.

He estimated the council will see €500,000 from the charge in 2012, an increase of €20,000 on last year’s amount.
Mr Dollard stated, “This charge, which was introduced in 2009, has proven to be a significant source of income for local authorities and at a national level has exceeded initial estimates. Late payment fees apply for charges not paid in the due period. The collection levels in 2010 were particularly positive. Collection levels in 2011 are somewhat below the overall level achieved in 2010. This is explained by the significant number of late payment fees that arose in the initial year of application of the charge and those liable have now adapted to the late payment provisions and consequently the income from this measure has somewhat reduced in 2011. Overall, I am estimating a sum of €500,000 from the charge in 2012.”
The annual budget meeting also heard that in terms of expenditure on housing and building, 17 houses were upgraded in 2011 under the Energy Efficient Programme, and of these, 10 achieved a BER rating of C3 or higher. The programme applies only to vacant houses for re-letting and is part funded by the Department of the Environment, Community and Local Government. According to Mr Dollard, the department has been made aware of issues with the programme and is considering some changes for next year.
“However, at present, the scheme provides for the future-proofing of properties where the opportunity exists and we will continue to utilise whatever funding is available,” he added.
Work on the comprehensive refurbishment of three houses in Hermitage has commenced and will be completed by March. The cost is largely funded by the Department of Environment, Community and Local Government. “When completed, they will be energy-efficient and universally accessible and be a very welcome addition to the council’s housing stock,” stated Mr Dollard.
At the present time, the council has six casual vacancies, four of which are allocated and will be ready for occupation in the coming weeks. The remaining two require more significant repairs and will not be available for letting until later in the year. “Works to vacant houses have focused on achieving standards within short timescales to ensure periods of vacancy are minimised,” Mr Dollard explained.
In line with Government policy, the council is leasing eight homes on the private market for social housing, the full cost of which is borne by the department, and negotiations are ongoing in relation to other accommodation.
“Regular contact is maintained with property owners to ensure the council gains maximum benefit from the scheme and affords those on the approved housing list the opportunity to take up a social housing tenancy,” outlined Mr Dollard.
The council’s contribution under these schemes comes from capital receipts rather than the revenue budget. The overall revenue budget for housing repairs is being reduced by €40,000 on last year’s provision.
Councillors at the budget meeting were also told there has been a very significant amount of activity undertaken in the area of flood remediation work in 2011. “While the works undertaken may not be readily apparent or visible, some significant schemes have been initiated, which will alleviate the type of flooding that has been experienced at a number of locations throughout the town,” stated Mr Dollard.
These schemes include works at Gort Road Business Park, Aughanteeroe, Fior Uisce, Watery Road and Elm Park.
According to Mr Dollard, “The appointment of a contractor for the second stage of the River Fergus Lower Drainage Scheme is awaited. This scheme, under the auspices of the Office of Public Works, is a very important scheme for the town and the council has maintained ongoing contact with OPW representatives to progress the scheme.”
The tender process for the scheme is being recommenced and the outcome of the new process awaited.