The Valuation Acts 2001-2015 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. As Minister, I have no function in decisions in this regard.
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 by a ratepayer in any calendar year is a product of the valuation set by the Valuation Office multiplied by the Annual Rate on Valuation (ARV) decided annually by the elected members of the 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. This NAV is applied to all rateable properties, including wind farms, on a nationwide basis. All valuations determined for rating purposes under Part 5 of the Valuation Acts 2001 to 2015 must also endeavour to be correct, equitable and uniform. These are fundamental principles of the system of rateable valuation.