A “Revaluation” is the production of an up-to-date Valuation List of non-domestic property, for Commercial Rates purposes, within a local authority area, by reference to property rental values at a specified valuation date. This results from the carrying out of a new valuation of every relevant property in a particular rating authority area. The legal provisions which govern this are set out in Part 5 of the Valuation Act 2001, as amended by the Valuation (Amendment) Act 2015.
Essentially, the process commences with a statutory consultation which the Commissioner of Valuation undertakes with the Minister for the Environment, Community and Local Government and the relevant rating authorities. On completion of the consultation process, the Commissioner may make a statutory order, known as a “valuation order” in relation to carrying out the Revaluation. This order specifies the date by reference to which the value of every relevant property in the particular rating authority area shall be determined. The process results in the publication of a Valuation List containing the new valuations of all relevant properties thereon and that List become effective for Rates purposes subsequently.
For Rating Authorities that have already undergone a Revaluation, the period between the first and second Revaluation cannot be less that five years and more than ten years.
All local authorities are being revalued under a National Revaluation Programme which is well underway. To date, revaluation has been completed in Dublin City Council, Fingal, Dún Laoghaire-Rathdown, South Dublin, Limerick City and County and Waterford City and County rating authority areas. The next stage of the programme, will result in the revaluation of commercial and industrial properties in Carlow, Kildare, Kilkenny, Leitrim, Longford, Offaly, Roscommon, Sligo, South Dublin and Westmeath County Councils.
Rates are an annual charge on non-domestic property and are an important element in funding the general provision of services of local authorities. Rates are payable on commercial, industrial and some other non-domestic properties. The local authorities charge commercial rates on the basis of the valuations provided to them by the Valuation Office. The valuation of a property is multiplied by the Annual Rate on Valuation (ARV), which is set by the local authority at its budgetary meeting each year, to calculate the amount of commercial rates payable per annum.
A Valuation is an estimate of the Net Annual Value of a property, at a specified valuation date, on the assumption that the occupier is responsible for the payment of commercial rates, internal & external repairs and the building insurance of the property.
The term “net annual value” has a legal definition and is set out in section 48 of the Valuation Act 2001 as “…… the rent for which, one year with another, the property might, in its actual state, be reasonably expected to let from year to year, on the assumption that the probable average annual cost of repairs, insurance and other expenses (if any) that would be necessary to maintain the property in that state, and all rates and other taxes and charges (if any) payable by or under any enactment in respect of the property, are borne by the tenant”.
A Valuation List is the term used to denote the valuations for rating purposes of all commercial and industrial properties in a particular local authority area. On the completion of a revaluation of a local authority area, a new Valuation List is published and details relating to properties thereon is available for public inspection at the Valuation Office, the local authority or online.
In line with best practice internationally, there are a number of valuation methods used by the Valuation Office to assess the Net Annual Value of a property. The most common method used is direct comparison with annual rental values of other similar properties in the area. Other classes of properties such as licensed premises, hotels and service stations are valued by reference to the trading data associated with the particular property.
The same basis of assessment applies to all properties irrespective of whether they are rented or owner occupied.
A Valuation Manager appointed by the Commissioner of Valuation assesses the Net Annual Value of your property and sets a valuation in line with rental values at the specified valuation date. The Valuation Office carries out its functions in an independent and objective manner. Extensive analysis of rental information is carried out. This rental information is available through multiple market sources, together with the information provided by the occupiers in relation to their own individual properties. Information provided by occupiers to the Valuation Office is used for the purposes of the Office carrying out its statutory functions. The Valuation Office is supported by an extensive computerised market analysis model in establishing market rental values at the specified valuation date.
When a revaluation commences, a revaluation pack comprising an explanatory guide and a Revaluation Information Form is issued by post to every ratepayer in a local authority area the subject of the revaluation.
If you are a ratepayer in either Carlow or Kilkenny County Councils and do not receive your revaluation pack, please contact our Revaluation Helpline by telephoning 01 8171199 or by Email to ckreval2017@valoff.ie
If you are a ratepayer in either South Dublin, Kildare, Leitrim, Longford, Offaly, Roscommon, Sligo and Westmeath County Councils and do not receive your revaluation pack, please contact our Revaluation Help Line by telephoning 01 8171033 or by Email to Reval2017@valoff.ie
The helplines are in operation from 9.30am to 5.30pm Monday to Friday, excluding public holidays.
When you receive the revaluation pack, please read the documents carefully. You should then proceed to complete the Revaluation Information Form at your convenience, preferably on line by visiting the Valuation Office website www.valoff.ie and using the Property No and PIN Code printed in the letter you have received with your pack. Alternatively, you may complete the copy of the Form you have received with the pack and return it by post using the enclosed Business Reply Envelope.
Yes, you should note that you are legally obliged to complete a Revaluation Information Form within 28 days of the date on the letter you received as part of your revaluation pack.
Under the legislation, a person who fails to comply with this requirement or who provides information which is false in a material respect, knowing it to be false or reckless as to whether it is false, shall be guilty of an offence and liable to a Class A fine.
The legal obligations in this regard are set out in detail in section 46, and the penalties for offences are specified in section 65 of the Valuation Act 2001, as amended by the Valuation (Amendment) Act 2015.
The information pack issued to every ratepayer in a local authority area the subject of a revaluation contains details about the revaluation process. When the revaluation in your local authority area is complete, the Valuation Office will send you a proposed valuation certificate which will show the details and the valuation proposed for your property. You will have an opportunity to make representations (within 40 days from the date of issue of the proposed certificate) if you are unhappy with anything contained in the proposed valuation certificate. Following consideration of your representations, the Valuation Office will send you a final valuation certificate. This will be the basis for the commercial rates that will be levied on your property by the local authority from 2018 onwards.
Yes. If you are dissatisfied with the outcome of your representations to the Valuation Office, there is a right of appeal to the Valuation Tribunal, an independent body set up to settle disputed valuations between the Valuation Office and ratepayers or local authorities.
A decision of the Valuation Tribunal is final in relation to the amount of the valuation. However, there is a further right of appeal to the High Court on a point of law.
If you are a ratepayer in Carlow, Kildare, Kilkenny, Leitrim, Longford, Offaly, Roscommon, Sligo, South Dublin and Westmeath, the new valuations will become effective for rates purposes for 2018 and subsequent years.
No. Your valuation is the basis on which local authorities calculate and levy rates on your property but is not your rates liability. Your rates liability is a product of your valuation, as assessed by Officers of the Commissioner, multiplied by the Annual Rate on Valuation (ARV) which is set by the local authority.
Your commercial rates liability may increase decrease or remain unchanged following Revaluation. The outcome depends on how the Net Annual Value (rental value) of your property has changed relative to the other property values in your local authority area. Until all properties in your local authority area have been revalued it will not be possible to predict how an individual property will be affected.
In general, however, the number of occupiers who have experienced a decrease in their valuation has exceeded the numbers who have experienced an increase in the revaluations carried out to date.
To establish the amount of commercial rates to be paid on your property, the valuation assessed by the Valuation Office for your property is multiplied by the annual rate on valuation (ARV) set by the local authority. An ARV is set each year by the local authority, taking into consideration the money it needs to raise to provide services.
As an example, take three properties each with a rates liability of €4,000 before revaluation but with differing estimates of Net Annual Value following a Revaluation of say, €13,000, €16,000 and €18,000 respectively. Assuming, for example, that your local authority sets an ARV of 0.25 after the revaluation, the table below shows the potential change in the rates liability of each property following revaluation.
| Property A | Property B | Property C | |
|---|---|---|---|
| Rates Liability before Revaluation | €4,000 | €4,000 | €4,000 |
| Annual Rental Value following Revaluation | €13,000 | €16,000 | €18,000 |
| *Hypothetical ARV set by local authority after Revaluation | 0.25 | 0.25 | 0.25 |
| Annual Rental Value following Revaluation X ARV | (€13,000 X 0.25) | (€16,000 X 0.25) | (€18,000 X 0.25) |
| Rates Liability after Revaluation | €3,250 | €4,000 | €4,500 |
| Changes in Rates Liability due to Revaluation | – €750 | No Change | + €500 |
| *Hypothetical ARV for illustrative purposes |
No, the purpose of revaluation is to redistribute the commercial rates liability more equitably between ratepayers rather than to increase the total amount of commercial rates collected by a local authority. Under the Valuation Act 2001, as amended by the Valuation (Amendment) Act 2015, the commercial rates income of the local authority is capped in the year following a revaluation. Any increase is limited to the rate of inflation.
If you require further information, please contact our Revaluation Help Lines as follows:
If you are a ratepayer in either Carlow or Kilkenny County Councils contact 01 8171199 or by Email to ckReval2017@valoff.ie
If you are a ratepayer in either South Dublin, Kildare, Leitrim, Longford, Offaly, Roscommon, Sligo and Westmeath County Councils by telephoning 01 8171033, LoCall 1890 531431 or by Email to Reval2017@valoff.ie.
The helplines are in operation from 9.30am to 5.30pm Monday to Friday, excluding public holidays.
CSNA, W4D1, Ladytown Business Park, Naas, Co Kildare, W91 V8X2 | 045 53 5050 | info@csna.ie
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