Written answers
Wednesday, 29 April 2009
Department of Finance
Property Prices
9:00 pm
Noel O'Flynn (Cork North Central, Fianna Fail)
Link to this: Individually | In context
Question 120: To ask the Minister for Finance if the Valuation Office is conducting a review of retail and commercial valuations throughout the country as provided for in the Valuation Act, 2001; if his attention has been drawn to the fact that new property valuations which were determined during the height of property prices are now worth 20% to 40% less and that a review of the current full rental value of property, which is one of the factors used to determine the valuation of properties is now necessary; if such a review has commenced and the location of same; when Cork city and county will have a review carried out; if rateable valuations for retail and commercial properties will fall as a result of any review which will see savings for owners and tenants who are struggling to stay in business at present; and if he will make a statement on the matter. [16867/09]
Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context
The Valuation Act 2001, which came into effect on 2 May 2002, provides for the revaluation of all commercial and industrial property. The revaluation programme began in November 2005 in the South Dublin County Council area and has since been rolled out to Fingal and Dún Laoghaire-Rathdown County Councils. The South Dublin County Council revaluation was completed in December 2007. Fingal County Council will be completed later this year and Dún Laoghaire-Rathdown County Council will be completed in 2010. Once a local authority has been revalued the Valuation Act provides for a subsequent revaluation not sooner than 5 but not later than 10 years.
The Valuation Act 2001 provides for the rates income of the local authority to be capped in the year following a revaluation; therefore a revaluation will not increase the commercial rates income of a local authority. The purpose of revaluation is to bring more equity, fairness and transparency into the local authority rating system and to distribute the commercial rates liability more equitably between ratepayers. Following revaluation there will be a much closer and uniform relationship between rental values of property and their commercial rates liability. A valuation date that coincides with a period of buoyant property values will not in itself increase the amount of rates collected by a rating authority or the amount payable by an individual ratepayer. It is the relative value of properties to each other rather than the absolute value of an individual property, which will determine whether a property's rates liability will decrease or increase following a revaluation. Once the revaluation is completed in the three County Dublin local authority areas and the Dublin City Council area, it is proposed to initiate the revaluation of Cork City and County as the next areas of highest population.
No comments