COMMERCIAL RATES

Commercial Rates are levied annually on relevant property, as defined in the Valuation Act 2001, by county councils, city councils, borough councils and town councils which were former UDCs. Each of these authorities has exclusive rating jurisdiction within its own area. As a general rule, rates are levied on the occupiers of property.

What is a Valuation?
A valuation is an estimate of the annual rental value of a property at a specified valuation date on the assumption that the occupier is responsible for the commercial rates, repairs and building insurance of the property. A valuation date that coincides with a period of buoyant property values will not in itself increase the amount of rates collected by a rating authority or the amount payable by an individual ratepayer.

In the first year following a revaluation the commercial rates income of the local authority is capped at their preceding year’s rates income multiplied by the Consumer Price Index (+ or -). Therefore, the selection of one valuation date over another will not increase or reduce the overall total amount of rates collected by a local authority following revaluation.

How is the Valuation of my property assessed?
There are a number of methods used by valuers to assess the annual rental value. The most common method used is direct comparison with similar properties in the area.

Who will assess the valuation of the property?
A valuer, called a “Revision Officer”, from the Valuation Office will call to assess the valuation of your property. The revision officer will, in the first instance and where possible, make contact prior to inspection in order to make an appointment. Once the property has been inspected, the revision officer will send you a draft certificate containing the proposed valuation and other details of your property. If you are unhappy with the valuation or other details contained in the draft certificate, you may make representations, in writing, to the revision officer within 28 days of the issue of the draft certificate. Following consideration of your representations the revision officer will send you the final valuation certificate.

Is the Valuation of my property my commercial rates liability?
No. Your valuation is the basis on which local authorities levy rates on ratepayers. To calculate your rates liability the rateable valuation is multiplied by the annual rate on valuation (ARV).

What factors affect Commercial Rates assessment?
A rates assessment on properties involves two factors – rateable valuation and annual rate on valuation :

Rateable Valuation
The rateable valuation of property is determined by the Commissioner of Valuation. In most cases it is based on an estimate of the likely rent that a tenant would pay on an annual basis.

Annual Rate on Valuation.
The second factor that determines a rates assessment is what is called the “Annual Rate on Valuation” (formerly known as “the rate in the pound”). Put simply, it is a multiplier, and is determined by the Council at its Annual Budget Meeting. A rates assessment is determined simply by multiplying the rateable valuation by the annual rate on valuation e.g. R.V. Annual Rate Rates Assessed on Valuation €100 x 66.32 = €6,632. The rates year coincides with the financial year.

Who can apply to have the valuation of property revised or altered?
The occupier or owner of property, the Rating Authority, or an occupier of other property appearing on the valuation list may apply, in writing to the Commissioner of Valuation, to have the valuation of property revised.

Can I appeal my valuation?
You can appeal the valuation to the Commissioner of Valuation within 40 days from the date of issue of the valuation certificate.
The appeal must be made on the prescribed form (Appeal 1 2002 form) and accompanied by the appropriate fee.

What is a Valuation List?
A Valuation List is a list showing the valuations of all commercial and industrial properties in a local authority area. The Valuation Lists are available for inspection at the Valuation Office, the Local Authority or online at www.valoff.ie

What is Revaluation?
A revaluation is the production of a new and up-to-date Valuation List of all commercial and industrial property, within a Local Authority area, by reference to property rental values at a specified valuation date.

Why have a Revaluation?
The existing Valuation Lists do not reflect the major shifts in property values that have occurred over the years. A revaluation is supposed to bring more equity, fairness and transparency into the local authority rating system. Following revaluation it is estimated that there will be a much closer relationship between rental value and commercial rates liability. A revaluation will result in a redistribution of the commercial rates liability between ratepayers in a local authority area.

Who is carrying out the Revaluation process?
The process is being carried out by the Valuation Office which is the State property valuation agency. The core business of the Valuation Office is the provision of accurate, up to date valuations of commercial and industrial properties to ratepayers and rating authorities as laid down by statute. The Valuation Office is independent of and does not act for local authorities.