Dáil Éireann Debate, Thursday - 21 February 2019
206. Deputy Róisín Shortall asked the Minister for Housing, Planning and Local Government the position regarding commercial rates calculations (details supplied); and if he will make a statement on the matter. [8818/19]
View answerThe 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 relation to decisions in this regard.
The Deputy may be aware that, under Irish law, there is a distinct separation of function between the valuation of rateable property and the setting and collection of commercial rates. The amount of rates payable in any calendar year is a product of the valuation set by the Commissioner of Valuation, multiplied by the Annual Rate on Valuation (ARV) decided annually by the elected members of each local authority.
A valuation for commercial rates purposes is arrived at by estimating the Net Annual Value (NAV) of the property in question, at a specified valuation date. 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”. This definition of Net Annual Value is applied to all rateable properties and classes of business on a nationwide basis.
Commercial rates are a charge levied on the occupation of a property based on the valuation of that property determined under the Valuation Acts 2001 to 2015. In the case of a property licensed under the Licensing Acts 1833 to 2011 to sell beer, wine and spirits, the annual value of that license is, under the Valuation Acts, a relevant factor in calculating the valuation of such a property.
Where a property or part of a property becomes licensed to sell beer, wine and spirits or ceases to be so licensed under the Licensing Acts 1833 to 2011, then a “material change of circumstances” (MCC) within the meaning of the Valuation Acts is deemed to have taken place. Where an MCC has come about, a revision application should be made to the Valuation Office to arrange for a revision of the valuation on the property to take account of the new circumstances.
The Deputy may be aware that there are a number of avenues of redress for an occupier of rateable property who is dissatisfied with a determination of valuation made under the provisions of the Valuation Acts, 2001-2015. Firstly, before a determination is made, there is a right to make representations to the Valuation Office in relation to a proposed valuation. Later in the process, if the occupier is still dissatisfied with the determination, there is a right of appeal to the Valuation Tribunal which is an independent body set up for the purpose of hearing appeals against determinations of the Valuation Office. There is a right of appeal to the Higher Courts on a point of law.
