Anne Ferris (Wicklow, Labour)
Link to this: Individually | In context

Question 180: To ask the Minister for Public Expenditure and Reform his plans to review the mechanism for calculating commercial rates, given that valuations only take place every ten years and in view of the current economic climate; and if he will make a statement on the matter. [29583/11]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

The Commissioner of Valuation has sole responsibility for all valuation matters under the Valuation Act 2001 which includes the implementation of the revaluation of all commercial and industrial properties on a nationwide basis. The basis of valuation for all commercial property is net annual value, i.e. the rental value of the property. To ensure equity and uniformity, valuation revisions set for modified or new properties are determined by reference to the values of comparable properties on the same valuation list.

The revision process deals with the physical changes that take place to properties such as new buildings, extensions, subdivisions, exemptions etc and reflect these changes in the valuation lists. Both rating authorities and ratepayers submit requests to the Valuation Office to have rateable valuations amended to take account of these types of changes.

Revaluation is the mechanism whereby economic changes that take place in the property market are reflected in the valuation lists and in individual ratepayers' rates liabilities. The purpose of revaluation is to bring more equity, fairness and transparency to the local authority rating system, and, following revaluation, there will be a much closer relationship between rental value and commercial rates liability and this relationship will thereafter be maintained by means of recurring revaluations provided for in the Act.

The revaluation programme began in November 2005 in the South Dublin County Council area and has since been rolled out to the areas covered by Fingal and Dún Laoghaire-Rathdown County Councils. The revaluation of South Dublin was completed in December 2007, Fingal was completed in 2009 and Dún Laoghaire- Rathdown was completed in 2010 and the process is now being rolled out in the Dublin City Council area.

My Departmental officials are reviewing various provisions of the Valuation Act, 2011, to modernise and streamline the valuation process in the interests of both ratepayers and the local authorities. A significant amount of work has already been undertaken and preliminary Heads of Bill have been drafted in conjunction with the Valuation Office and the Attorney General which I hope to bring to Government for approval shortly.