05/11/19 Revaluation of all commercial and industrial properties in Donegal commences

John O’Sullivan, Commissioner of Valuation, has made Valuation Orders on 4^th November, under section 19 of the Valuation Act 2001 as amended by section 7 of the Valuation (Amendment) Act 2015 for the rating authority areas of Clare, Donegal, Galway, Kerry and Mayo County Councils and Galway City Council. These orders signal the formal commencement of the revaluation of all commercial and industrial properties for rating purposes in these rating authority areas. This is an important milestone in the revaluation of all non-domestic property in Ireland which is currently underway through a programme known as the National Revaluation Programme.

All occupiers of rateable property in these rating authority areas should shortly receive a revaluation information form along with an explanatory letter and information leaflet. The form seeks information about the rateable property including its use and rental details, where it is rented. Occupiers are required to complete this form and return it to the Valuation Office. The information provided is critical to the revaluation process.

The revaluations will be carried out in accordance with the provisions of the Valuation Acts 2001-2015 and are part of the national programme to modernise the rateable valuation of all commercial and industrial property in Ireland. The programme has already been concluded in the rating authority areas of Carlow, Cavan, Dún Laoghaire-Rathdown, Fingal, Kildare, Kilkenny, Laois, Leitrim, Longford, Louth, Meath, Monaghan, Offaly, Roscommon, Sligo, Tipperary, Westmeath, Wexford and Wicklow County Councils, as well as the rating authority areas of Dublin City Council, Limerick City and County Council and Waterford City and County Council.

Provision for a revaluation of all non-domestic property in Ireland was initially made under the Valuation Act of 2001. This legislation was amended by the Valuation (Amendment) Act 2015, which improved and streamlined the process. Neither residential property nor agricultural lands are rateable and consequently will not be affected by the revaluation.

The revaluation will take account of contemporary rental levels in the respective rating authority areas and will result in a more equitable distribution of commercial rates among ratepayers. A Valuation Manager has been appointed to assess the value of each rateable property and set a valuation in line with rental values in each respective rating authority area at the valuation date of 16^th September 2019. It is envisaged that the new valuations will be published on 15^th September 2021 and will become effective for rating purposes from 1^st January 2022.

A revaluation is necessary to bring more equity and transparency into the Local Authority rating system. Following revaluation, there is a much closer and more uniform relationship between contemporary rental values of property and their commercial rates liability. The revaluation will result in a redistribution of the commercial rates liability between ratepayers depending on the relative shift in the rental values of their properties in relation to each other.

While an individual occupier’s rates liability may increase or decrease, the revaluation will not increase the overall commercial rates income of the Local Authority.  The commercial rates income of each Local Authority undergoing revaluation will be capped in the year following a revaluation.

The Valuation Office

The Valuation Office is the State property valuation agency and is independent in carrying out its functions. Its core business is the valuation of commercial property for rating purposes. Rates are imposed by local authorities by reference to the rateable value of each property as determined by the Valuation Office (or, on appeal, by the Valuation Tribunal – see below). 

The valuation of a property is based on its annual rental value at the date of valuation. This is multiplied by the annual rate on valuation (ARV) to give the amount of commercial rates payable per annum. The ARV is set each year by each Local Authority.

An occupier can appeal against a valuation to the Valuation Tribunal, an independent body set up to settle disputed valuations. The decision of the Valuation Tribunal is final on the amount of valuation. There is a further right of appeal to the High Court and ultimately the Supreme Court on a point of law.

Revaluation 2021: Key Dates

4^th November 2019          Making of Valuation orders by Commissioner of Valuation

Quarter 1 2021                  Commencement of issuing of Proposed Valuation Certificates to ratepayers in relevant rating authority areas. Representations must be received within 40 days of date of issue

September 2021               Issue of Final Valuation Certificates

15^th September 2021     New Valuation Lists published

1^st January 2022                New valuations become effective for Rates purposes across the relevant Local Authorities.

 For more information on the Revaluation process visit www.valoff.ie