Paddy Cooney Valuation Office Valuation Bill Revaluation by MikeJenny

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									Valuation Office Ireland
 Retail Excellence Ireland

       Conference

   Lyrath Estate Hotel

    7 November 2009
Valuation Office Ireland

         Presenter

       Paddy Cooney

     Valuation Manager
  The Function of the Valuation
             Office

• Provision of a rateable valuation service to
  local authorities (our core business)

• Underpins the Commercial rates income of
  €1.35 Billion
                    Statutory Authority

• Valuation Act, 2001

• Act sets out what is to be valued

• Act sets out how property is valued
                Programmes


• Revision



• Revaluation
                               Revision
                       List Maintenance

•   8,000 requests per year
•   New Properties
•   Improved Properties
•   Demolished properties
•   Properties no longer used commercially
        What Is A Revaluation?

•   Valuation of all rateable properties
•   Specific valuation date
•   All new valuations effective on same date
•   Rates cap
•   Redistribution of rates liability
                  Why a Revaluation?

• Rates – tax based on property rental values
• Equity and uniformity
• Differential movement in rental values
• Restore relativity between properties,
  categories & locations based on value
• Transparency – full rental values
         The Valuation Process

•   Estimate of NAV
•   Based on analysis of a basket of rents
•   Shopping centres & industrial estates
•   Pubs, etc – volume of trade/accounts
•   Rateable plant etc – contractors basis/costs
      Revaluation Programme

Projects
  Authority     Publication    Effective Date
SDCC            31/12/2007        1/1/2008

Fingal          31/12/2009       1/1/2010
Dun Laoghaire   31/12/2010       1/1/2011
Dublin City     Consultative   Consultative
                  Phase          Phase
              Revaluation of Utilities

• Telecoms; Energy; Railways

• 13 Utilities re-valued

• Contribute €109 Million to rates revenues
           Ratepayer Rights
• Right to make Representations

• 1st Appeals to Commissioner

• Independent Valuation Tribunal

• Higher Courts on point of law
     Outcome of South Dublin
          Revaluation

• Increased Rates Liability
  2401 Ratepayers (39%)

• Reduced/No Increase Rates Liability
  3077 Ratepayers (49%)

• New Properties
  779 (12%)
               Outcome by Category

• Retail       20% increase in liability

• Industrial   2% reduction in liability

• Office       2% increase in liability
 Winners & Losers by Category

• Industrial Properties (2885)
   39% increased, 61% reduced
• Retail Shops (1311)
   52% increased, 48% reduced
• Office Properties (728)
   36% increased, 64% reduced
A Tale of Two Shopping Centres

• The Square SC, Tallaght
  – 197 items
  – Rates Liability reduced by 6%


• Liffey Valley SC
  – 116 items
  – Rates liability increased by 55%
          Rental Indices – Lisney

Year   Offices   Industrial Retail
1970   100       100        100

1988   694       595        913

2005   1694      1668       4015
                Summary

• Maintain Valuation Lists

• Equity & fairness in rating assessment

• Regular revaluations
The End



Thank you
        Revaluation Outcomes
                             South Dublin

• New List – 6274 properties

• Rateable Valuation before - €1.578 M

• Rateable Valuation after - €689.68 5M

• Factor of Increase – 437
                       Commercial Rates

• Jurisdiction   Rates Income      Properties

• Republic       €1.35 Billion     170,000

• NI             £ 560 Million     72,000
                 (€ 620 Million)
             Rates Income – Top Six

• Dublin City              €304.5 M
• Fingal                   €124 M
• South Dublin             €114 M
• Cork County              €97.5M
• Dun Laoghaire            €83.5 M
• Cork City                €58.5 M
These account for c.58% of the rates revenues
         Change in Valuation Base

• Year       Net Effective Valuation

• 2000       €13,055,188

• 2007       €19,632,676

• % Change   50%

								
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