Eugene Murphy (Roscommon-Galway, Fianna Fail)
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94. To ask the Minister for Justice and Equality the method of calculation new wind farm developments are subject to in order to calculate the rateable valuation of the development; and if she will make a statement on the matter. [13036/17]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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I should advise the Deputy that while the Valuation Office came under the aegis of my Department with effect from 1 January 2016, the Commissioner of Valuation as head of that Office is independent in the performance of his functions and I, as Minister for Justice and Equality have no function in the valuation of property for rates purposes, or in any appeal against a valuation.

The Valuation Act 2001 provides for a revaluation programme which is maintained on a rolling 5-10 year cycle. The Valuation Office has recently revalued all commercial properties in a number of rating authority areas as part of a revaluation programme that will see the valuation of all commercial properties in the State brought up to date by reference to modern property values. I have been informed by the Commissioner that a number of wind farms in the relevant counties have been revalued as part of this programme.

The purpose of a revaluation in a Local Authority area is to redistribute the rates burden with each ratepayer's liability reflecting up-to-date property rental values. The Valuation Acts 2001-2015 provide for an appeal to the Valuation Tribunal, (an independent statutory body established for that purpose), and a subsequent appeal to the High Court on a point of law, for all valuations carried out under the Valuation Acts. The basis of rateable valuation for all property is "net annual value", as defined in Part 11 of the Valuation Act 2001. Section 48 of the Act, as amended, provides that net annual value is 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 stage, and all rates and other taxes in respect of the property, are borne by the tenant of the property.

I am informed that in accordance with well established international valuation principles and best professional practice, and in keeping with the case law of the independent Valuation Tribunal and the jurisprudence of the Higher Courts, various methodologies may be used in estimating the net annual value of a property or class of properties for the purposes of section 48. One commonly used method is known as the "receipts and expenditure" method of valuation where trading accounts relating to the use of a particular property are analysed to estimate its net annual value. Another method of valuation used from time to time, depending on the particular circumstances and type of property involved is known as the "contractor's method" where the annual equivalent of the cost of construction, allowing for depreciation as appropriate and the value of the site, is used to arrive at the net annual value.

I am advised that, as regards the valuation of wind farms, the Valuation Office sought information on construction and development costs as well as detailed trading information for such facilities and that the information provided was used to draw up a valuation scheme, based on a combination of the "receipts and expenditure" and the "contractor's" methodologies, for the wind farms which have to date been valued under the revaluation programme. I am also advised that the valuations of a number of wind farms have been appealed to the independent Valuation Tribunal, which will issue its determination in due course.