Seán Barrett (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context

Question 155: To ask the Minister for Finance in view of the current economic downturn and the ensuing fragility of businesses, the rationale for the revaluation of all commercial and industrial property throughout the country which is resulting in rate liability increases of upwards of 100% in many cases; and if he will make a statement on the matter. [2012/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Valuation Act, 2001 which came into effect on 2nd May, 2002, provides for the revaluation of all commercial and industrial property in the State. The Commissioner of Valuation has sole responsibility for all valuation matters under the Act, which includes the implementation of the revaluation programme. The purpose of revaluation is to bring more equity, fairness and transparency into the local authority rating system. Ideally, occupiers of properties of similar value in the same local authority area should have a similar rates liability. Following completion of the initial national revaluation programme, I am satisfied that there will be a much closer and uniform relationship between rental values of property and their commercial rates liability and that this relationship will thereafter be maintained by means of the recurring revaluations provided for in the Act.

It is not the purpose of the national revaluation programme to increase the total amount of commercial rates collected by local authorities. In fact, the relevant legislation (Valuation Act, 2001 and the Local Government Business (Improvement Districts) Act, 2006) provides that the commercial rates income of local authorities in the year following a revaluation is capped. The only increase in the total rates income of a local authority permitted in the year following publication of the new Valuation list is an increase for the rate of inflation. While some ratepayers have had their valuations increased, others have had a decrease and where such fluctuations occur, they relate to the redistribution of the rates burden on ratepayers, depending on the relative shift in rental values of the properties they occupy. The redistribution of the rates liability following revaluation is a function of market conditions at the date of valuation and the composition of the valuation list in terms of property type. Therefore the trend of reduced or increased rates liability in certain sectors in the revaluations to-date may not be replicated in the revaluations of other areas.

When the revaluation of a local authority is complete, the Valuation Office issues a proposed Valuation Certificate and a summary valuation report to each ratepayer. If the ratepayer is unhappy with the proposed valuation or other details in the certificate, she or he may make representations. When the representations have been considered, the Valuation Office issues final certificates to all ratepayers and publishes the new Valuation list.

Following publication of the new valuation list, there is an extensive appeal system available to ratepayers. Initially, they can appeal to the Commissioner of Valuation within 40 days of the publication date and, if still dissatisfied with the Commissioner's decision on appeal, have a further right of appeal to the Valuation Tribunal which is an independent body. The decision of the Valuation Tribunal is final on the amount of the valuation; however, there is a further right of appeal to the High Court and the Supreme Court on a point of law.