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Valuation Office

Dáil Éireann Debate, Tuesday - 29 January 2019

Tuesday, 29 January 2019

Questions (596)

Eamon Scanlon

Question:

596. Deputy Eamon Scanlon asked the Minister for Housing, Planning and Local Government further to Parliamentary Question No. 574 of 19 December 2018, if the Valuation Office is acting to meet international best practice; the reason the methodology it uses to value the Annual Rate on Valuation, ARV, of forecourt stations does not take into account the system used in Northern Ireland, which is to treat the shop element of the business in the same way as neighbourhood shops are treated; his views on whether this would be a sensible and precedented approach (details supplied); his further views on whether attention should be paid to the level of detail set out in the Northern Ireland practice notes as compared to the recently published Valuation Office practice notes; and if he will make a statement on the matter. [3868/19]

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Written answers

The Valuation Acts 2001 to 2015 provide for the valuation of all commercial and industrial property for rating purposes. The Commissioner of Valuation is independent in the performance of his functions under the Acts and the making of valuations for rating is his sole responsibility. I, as Minister, have no function in decisions in this regard.

As the Deputy is aware, a valuation for commercial rates purposes is an estimate of the Net Annual Value, NAV, of a property, at a specified valuation date, on the assumption that the occupier is responsible for the payment of commercial rates and for insuring and maintaining the property. The term, "net annual value", has a legal definition and is set out in section 48 of the Valuation Act 2001 as 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 state, and all rates and other taxes payable in respect of the property, are borne by the tenant.

I note the Deputy’s comments in relation to the approach adopted in Northern Ireland. However, the approach adopted in any jurisdiction will necessarily reflect the underlying legislation, which differs from jurisdiction to jurisdiction. I understand that the valuation methodology adopted by the Valuation Office for valuing service stations in Ireland is based on an analysis of the market for that class of property in this jurisdiction and in accordance with the provisions of the Valuation Acts 2001 to 2015 as they apply here.

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