Eoghan Murphy
Question:511. Deputy Eoghan Murphy asked the Minister for Public Expenditure and Reform the way commercial rates are determined for private houses that are used as businesses, for example doctor's surgeries. [16417/13]
View answerTuesday, 16 April 2013
Questions (511)
Written answers
I should point out that the Commissioner of Valuation is independent in the exercise of his duties under the Valuation Act, 2001 and the making of valuations for rating purposes is his sole prerogative and I, as Minister for Public Expenditure and Reform, have no function in this regard.
The levying and collection of commercial rates is the responsibility of each local authority and the Valuation Office has no function in this regard. Private residential houses are exempt from rates, however, if there is a business undertaking located in a residential house, such as a medical surgery or other similar facility being operated on a commercial basis, the accommodation space used for that purpose is valued for rating in the same manner as a commercial property unconnected to a private house.
The basis of rateable valuation for all commercial property, whether it forms part of a private house or otherwise, is net annual value and is set out in Part 11 of the Valuation Act, 2001. Net annual value is the rental for which one year with another, the building 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 state, and all rates and other taxes and charges (if any) payable by or under any enactment in respect of the property, are borne by the tenant of the property.
Various methodologies may be used in estimating the net annual value (NAV/rental value) of a building. The most common methodology used is direct comparison with other similar buildings in the same rating area.