Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The Commissioner for Valuation has sole responsibility for all valuation matters and the Valuation Act 2001 comes under the aegis of my colleague, the Minister for Public Expenditure and Reform.
The property’s valuation, together with the annual rate on valuation (ARV) decided by the elected members of each local authority in the annual budget, determines the level of rates to be paid. The factors that influence local authority members’ decisions on the ARV include the level of services to be provided by the local authority and the income available from all other sources to fund these services. Therefore, elected members adopt the ARV that they consider necessary to provide the range of services for the communities, including businesses, in their area.