Dáil Éireann Debate, Wednesday - 13 May 2020
1236. Deputy Michael Healy-Rae asked the Minister for Housing, Planning and Local Government if the revision of rates will be suspended (details supplied); and if he will make a statement on the matter. [4257/20]
View answerThe Commissioner of Valuation is independent in the exercise of his functions under the Valuation Act 2001, as amended, and the making of valuations for rating purposes is his sole responsibility. As Minister, I have no function in relation to decisions in this regard.
Under the Valuation Act 2001, as amended, the Commissioner is responsible for the provision and maintenance of a valuation list for each local authority area which is used by the local authority to determine the total amount of rates to be levied by it in a particular year. The provision and maintenance of valuation lists is accomplished using two statutory valuation processes known as “revaluation” and “revision”.
Having a modern valuation base is very important for the levying of commercial rates on a fair and equitable basis across all economic sectors. The Valuation Acts provide for the revaluation of all rateable property within a rating authority area so as to reflect changes in the relative value of properties over time.
The purpose of revaluation is to bring more equity, fairness and transparency into the local authority rating system and to distribute the commercial rates liability across businesses more equitably. In essence, the exercise aims to ensure that each ratepayer bears a fair share of the business rates burden levied by their local authority, relative to the rental value of the property that they occupy.
Revaluation is a process whereby all rateable properties in a local authority area are valued periodically by reference to a single valuation date. Revision, on the other hand, is intended to reflect structural changes to individual properties or the addition to the valuation lists of new properties between revaluations. This can reflect improvements to individual properties, subdivisions and amalgamations of properties, exemptions under Schedule 4 of the Valuation Act 2001, as amended, and the removal of properties from the list when they are no longer capable of beneficial occupation.
The restrictions on the operation of many businesses, the physical inaccessibility to business properties and the social distancing associated with controlling the COVID-19 pandemic have had an impact on the revision programme. Accordingly, it is not possible to process revision applications at present; however, this will be kept under review in the context of the implementation of the Government's Roadmap for Reopening Society and Business.
Insofar as revaluation matters are concerned, the Valuation Office is currently engaged in a national revaluation programme, the immediate objective of which is to ensure that the first revaluation of all rating authority areas in over 160 years is conducted across the country, as soon as possible, and on a phased basis. This is a welcome and positive development which is long overdue and on which considerable progress has been made in recent years.
The current phase of the programme, known as Reval 2021, covers the rating authority areas of Clare, Donegal, Galway, Kerry and Mayo County Councils and Galway City Council. The new valuations for these local authority areas will be published in September 2021 and will come into effect for rating purposes from 2022 onwards. Ratepayers in these local authority areas are currently paying rates based on valuations which reflect economic conditions in 1988.
For the majority of ratepayers, the outcome of a revaluation is very welcome. For example, across the 8 local authorities most recently revalued (Cavan, Fingal, Louth, Meath, Monaghan, Tipperary, Wexford and Wicklow County Councils), over 65% of ratepayers saw a reduction in their rates liability after revaluation. This is in line with the outcome of other revaluations conducted to date under the National Revaluation Programme.
The second revaluation of all rateable property in the Dún Laoghaire-Rathdown rating authority area was due to be finalised this year. However, as it is not possible to complete this exercise under current COVID-19 restrictions, it has recently been agreed with the Commissioner of Valuation that this revaluation will be deferred until next year, in line with the Reval 2021 timeline. An appropriate legislative amendment to underpin this decision will be brought forward at the earliest opportunity.
