Mary Coughlan
Question:44 Miss Coughlan asked the Minister for Finance whether the rateable valuation of livestock marts could be based on turnover as opposed to square footage; and if he will make a statement on the matter. [4393/96]
Written Answers. - Rateable Valuation of Marts.
The basis of rateable valuation of commercial property, including livestock marts, is net annual value (NAV) i.e. the rental value of the property. Among the factors that determine rental value are: the operations of the property market, changes in economic conditions, the profitability or turnover of business and changes or developments to property.
A central tenet of the rating code is uniformity and equity between rate-payers. In determining rateable valuation, the valuer has available a number of valuation methodologies. The courts have decided that the valuer is not required to use any particular method of assessment but may use the method most appropriate to the circumstances of the property. The most commonly used method is the direct comparative approach in which the valuation of similar properties is taken into account.
Livestock marts are valued using whatever is the most appropriate valuation methodology or combination of methodologies in the particular circumstances. This can involve valuation by a direct comparision on a square footage basis to other livestock marts, or by reference to the turnover or profitability of the livestock mart, or by reference to the development costs of the livestock mart. All these methodologies are legitimate and accepted mechanisms, depending on the circumstances of the property being valued, for determining net annual values.
Any ratepayer dissatisfied with a valuation or the method of calculation can appeal to the Commissioner of Valuation in the first instance and subsequently to the independent valuation tribunal. There is a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law.