National Revaluation Programme
Phase 2 - REVAL 2017
Topics
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Valuation Office
National Revaluation Programme
Valuation (Amendment) Act 2015
REVAL 2017 & how does it affects your
Rating Authority
Valuation Office
• Ireland’s State Valuation organisation since 1830
• Provision of a Rateable Valuation services for
assessment of commercial rates
• Commercial Rates = €1.4 billion annually
• Market Valuation service to Government
departments and agencies
• National Revaluation Programme
Context
• Valuation Act 2001
• No general revaluation conducted since midnineteenth century
• The case for revaluation
• Valuation (Amendment) Act 2015
Why a Revaluation?
• Rates = tax based on property rental values
• Correctness, Equity and Uniformity
– Differential movement in rental values over time
– Rental values do not change at the same pace
– Restore relativity between properties, categories &
locations based on Net Annual Value (NAV)
• Transparency – reflect current market rental
values
• Independent and objective outcome
• Rolling revaluation: every 5-10 years
Impact on Rates Income of Local Authority?
• It’s about Redistribution of rates liability
• Revenue neutral: No impact on first year
• Rates Cap (Sec. 56 Valuation Act 2001, as
amended)
• Any increase in overall Rates Income limited
to:
– Inflation
– New developments
– Improvements to existing buildings
How Revaluation affects the Rating System
• Before Revaluation:
– Rates Liability = RV (in nominal terms) x Annual
Rate on Valuation (ARV)
• After Revaluation:
– Rates Liability = NAV x ARV
• Net Annual Value (NAV)
– Set by Valuation Office through revaluation every 5-10 years
• Annual Rate on Valuation (ARV)
– Set by Local Authority each year
Dublin City Council Example
• Before Revaluation:
– RV = €120 x ARV (2012) = 61.19
– Rates = €7,342
• After Revaluation:
– NAV = €27,500 x ARV (2015) = 0.2557
– Rates = €7,032
Revaluation Outcomes
• Three possibilities:
– No change
– Decrease
– Increase
• Depends on movement of Rental Values
relative to rental values of other properties
Revaluation Outcomes so far
DLR
Dublin
City Council
Waterford
Limerick
2005
2005
2011
2011
2012
49%
65%
54%
56%
65%
65%
Increased
Rates Liability
39%
30%
46%
41%
32%
32%
No change/Not
Previously
Rated
12%
5%
-
3%
3%
3%
SDCC
Fingal
Valuation Date
2005
Reduced Rates
Liability
National Revaluation Programme – Phase 1
• Total no. of rateable properties = 146,000
• 55% of entire valuation base in monetary
terms now revalued
• Revalued properties = €3.8 billion NAV
• 33% of rateable properties in numerical terms
Valuation (Amendment) Act 2015
• Amends Valuation Act 2001
• New measures to accelerate the national
revaluation programme:
– Removal of Appeal to Commissioner
– “Occupier Assisted Valuation” (new Part 5A)
– Outsourcing of valuation work
REVAL 2017 Scope
• Scope: Revalue 10 Additional Rating Authorities
• Increase revalued base to 70,000 properties
– 67% revalued (monetary)
– 48% (numerical)
• Occupier Assisted Valuation (Pilot)
– Laois
• Outsourcing (Pilot)
– Carlow & Kilkenny
• Direct Assessment
– Offaly, Longford, Westmeath, Roscommon, Sligo, Leitrim & Kildare
REVAL 2017
Steps
• Consultation Process
– Commissioner writes to Minister for ECLG &
Chief Executive of Rating Authority
– Ongoing Liaison between VO & Rating
Authority
– Preparatory arrangements
• Commissioner signs Valuation Order
• Commissioner appoints Valuation Manager
Statutory Dates
• Valuation Date
• Date of Publication of New Valuation List
• Effective Date for Rates Purposes
Collaborative Approach
• Partnerships with rating authorities, representative bodies and
agents
• Joint SCSI/VO Rating Forum
• Providing information to Ratepayers
• Using full range of support channels, including Web
• Adopting standardised processes
• Increasing public understanding of rating valuation system through
dialogue with business representatives
• Engaging with peer organisations in other jurisdictions
Collecting & Analysing Information
• Valuation Information Form issues to all
occupiers of rateable property
• Historical property data in digital form
• Electronic Based Market Analysis: Market
Analysis Unit in VO
• ICT–supported valuation process
• Valuation Teams conducting field work
Estimating the NAV - Primary Evidence
Rental
Information
Trading Data
Construction
• Hotels, Pubs
etc.
Costs
• Clubhouses
etc.
“Valuation
Scheme”
Key Milestones
• Commissioner makes Valuation Order fixing
Valuation Date & appoints Valuation Manager
• Collection and analysis of data
– Rent/Lease/Tenure details
– Physical property data
• Valuation Manager issues Proposed Valuation
Certificates to Ratepayers
• “Representations” to Valuation Manager (40 days)
• Final Valuation Certificates issued
• New Valuation List for Rating Authority published
• Appeals to Valuation Tribunal (within 28 days)
• New Valuation List becomes effective
Appeal Process
• “Representations” to Valuation Manager
• Appeal to Valuation Tribunal
• Point of Law - Higher Courts
Valuation Tribunal
• Independent statutory body
• Panel of 20+ members
• Formal process
• Commissioner = Respondent
• Appellant = Occupier/Agent for Occupier
• Determinations final on valuation matters
www.valoff.ie