HOPES that racehorse trainers will get some relief on rates were dealt a blow this week when the Tánaiste indicated that training racehorses was a commercial enterprise and not suitable for exemption.

Trainers in Kildare and Kilkenny have been hit with proposed rates valuations for 2018 which in some cases are up to nine times the amount paid in previous years. Guided by the Irish Racehorse Trainers Association, a significant number of appeals were lodged and a ruling is expected in September.

A similar valuations exercise is expected to be rolled out to other counties later this year.

Although rates are collected by county councils and the funds used for local services, the amounts charged are decided by the independent Valuations Office based in Dublin. The valuers are working on the basis that while horse breeding is a farming activity and exempt from commercial rates, other equine businesses, such as training and riding centres, are commercial service providers and their owners must pay up.

Each property’s rates bill is based on the size of its covered areas, including haybarns and stables, even if they are empty. The Irish Field has been told of cases in Kildare where rates bills are set to jump from €1,700 to €15,000 and from €3,000 to €30,000 next year if the appeals fail.

Responding to a query on the issue from local Fianna Fail councillor Fiona McLoughlin, the Tánaiste and Minister for Justice Frances Fitzgerald said the matter was the sole responsibility of the Commissioner of Valuation who acts independently of Government departments.

The Minister said she has been advised by the Commissioner that the only element of the equine industry which satisfies the exemption provisions is horse breeding. “Buildings used for breeding of horses are classified as being of agricultural use and are “farm buildings” as defined in the Act. Therefore these buildings are exempted from the payment of rates.”

On the other hand, buildings used for the training of racehorses, recreational equestrian purposes or livery premises are rateable under the Act because they are considered to be part of a commercial enterprise. “Such buildings would typically include stables for horses, covered riding arenas, tack rooms and ancillary buildings used to support the enterprise.”

The Commissioner confirmed to the Tánaiste that there are no plans to reclassify these as exempt from rates. “To do so would be at variance with the provisions in the Valuation Acts which maintains the long-standing position that all property occupied and used for commercial enterprises are liable for rates.”

Kildare County Council recently passed a motion in support of the racehorse trainers’ plight. It was tabled by councillor Morgan McCabe who is also the catering manager at Horse Racing Ireland-controlled tracks.

However, it seems that the local politicians have limited power to intervene. Approximately 60% of Kildare County Council’s income is provided by just two giant computer companies – Intel and Hewlett-Packard. Any changes to the laws on rates which significantly reduced the amount those firms pay in rates could bankrupt the county.

The Commissioner appeared to dismiss claims that rates for racehorse trainers could rise by as much as 900%.

“While some significant increases in valuation may have occurred in isolated cases, an increase of the magnitude of 900% would be a rarity. Possible reasons for significant increases where they occur would be that the valuation of some of these properties had not been revised to take account of improvements, extensions etc. for some considerable time or where the valuations were historically low in comparison with the general level of valuations on that valuation list.”

Fianna Fáil councillor and bookmaker Daragh Fitzpatrick commented: “We support the trainers on this and I have gone with them twice to meet officials. The results of the appeals will be known in September and I would be hopeful that the trainers will get some relief. There will be an increase but the vibes I am getting is that the Valuations Office will look at them in a favourable light.”