National Revaluation Programme

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1 National Revaluation Programme REVAL 2017 Society of Chartered Surveyors Ireland 31 st January 2017 Declan Lavelle Head of Valuation Services

2 Presentation Outline Background Information Revaluation National Revaluation Programme - REVAL 2017 PVC Issue Dates Valuation Schemes Revaluation Outcomes PVC Checking your PVC Making a Representations VO Strategic Plan Valuing our Potential 2

3 Valuation Office Who we are and what we do 3

4 Rates - Valuation Annual Charge based on the value of the occupied property Valuation Valuation Office ARV Local Council members Valuation x ARV = Rates. 4

5 Why Revaluation? Equity and Uniformity - Differential movement in rental values occur over time - Restore relativity between properties, categories & locations. Current System Values - RVs Nominal Valuations Revaluation = Redistribution of rates liability Transparency current market rental values Rolling revaluation programme: every 5-10 years 5

6 What is a Revaluation? Revaluation is a revenue neutral exercise in redistribution between ratepayers, to maintain the fairness of the rating system. It is the process that brings Rateable Values back into line with current property rental values. It results in the production of a new Valuation List that contains new valuations for all rateable properties. 6

7 Revenue Neutral It s about Redistribution of rates liability Revenue neutral: rates income = 2017 rates income - Rates Cap (Sec. 56 Valuation Act 2001) Any increase in overall Rates take limited to: - Inflation - New developments - Improvements to existing buildings Every 1 increase for one Ratepayer = 1 reduction for another 7

8 National Revaluation Programme Effectively a new approach - a new system. Completed to date - Dublin Waterford Limerick 5 10 years 10 Counties as part of REVAL 2017 January Roscommon - Leitrim - Longford - Westmeath March/April

10 Rating Authority Offaly 2576 No. of properties (estimate) REVAL 2017 Leitrim 1201 Roscommon 2013 Westmeath 2948 Longford 1437 Kildare 5195 Sligo 2142 South Dublin 6840 Carlow 2040 Kilkenny 2979 Total 29,371

11 PVC Issue Dates/ARVs County Issue Date Indicative ARV Longford - 12/01/ Roscommon - 12/01/ Westmeath - 12/01/ Leitrim - 19/01/ Offaly - 02/03/2017 Kildare - 02/03/2017 Sligo - 16/03/2017 Carlow- 13/04/2017 Kilkenny - 13/04/2017 South Dublin - 13/04/

12 REVAL 2017 What s New? Large Geographical Area 10 LAs First Revaluations post 2015 Act S45 and S34(3) New Governance Procedures Revaluation Programme Board REVAL 2017 Review Group PVC contains summary report Carlow/Kilkenny CBRE SDCC 2 nd Reval 12

13 Statutory Process Valuation Acts 2001 to 2015 Commenced in Nov Explanatory Leaflet to each ratepayer - Met with various Trade Bodies/Chambers of Commerce - 10 Counties S45 Notices Analysis of Market and Trading Data 13

14 Year End Extracts from the accounts and trading information: Specify accounting year end (from accounts) Year (Date) End Year End (Date) Year End (Date) Total Turnover From all activities Breakdown of Turnover [excluding admission charges] On Sales Off Sales Food Other (please specify) Gross Profit From accounts Franchise Income (see note below) Details Admission Charges Details Expenses Wages & Salaries Insurance Entertainment Expenses Licence Fees Security Costs Legal Fees Rent Paid

15 Evidence Based Ratepayers Occupiers & Owners. - Current Rental Market Evidence - Trading Data/Accounts. - Development/Construction costs Revenue Commissioners - Particulars Delivered - Current Rental Market Evidence Lease details from the PSRA - Current Rental Market Evidence 25% of Properties inspected 15

16 How Revaluation is Conducted Estimating the NAV - Primary Evidence Trading Data Construction Rental Information Hotels, Licensed Premises, Nursing Homes etc. Costs Specialised properties Valuation Scheme

17 Valuation Scheme - Pubs Valuation Scheme: - On Sales: 7-8% of FMT - Off Sales: 3% of FMT - Food: 5% of FMT > 100k 17

18 Valuation Scheme Service Stations Shop Turnover: - Throughput > 1m litres 1-4% - Throughput < 1m litres 1-2.5% Fuel Sales /1,000 L to 11.00/1,000L Car Wash - Turnover 5% to 15% 18

19 Revaluation Outcomes SDC C Fingal DLR Dublin City Waterford Limerick Effectively a new system a new Council approach years 2005 Conducted Dublin 49% Waterford 65% Limerick 54% 56% 65% 65% 10 Counties as part of REVAL Sligo Leitrim to Carlow Kilkenny Valuation Date Reduced Rates Liability Increased Rates Liability No change/not Previously Rated 39% 30% 46% 41% 32% 32% 12% 5% - 3% 3% 3% 19

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22 Proposed Valuation Certificate Its still a work in progress Examine the information on the PVC - Property Details - Occupier/Trading As - Floor Levels /Floor Areas - Valuation Have you provided your Trading Data? Closing date for representations is 21 st/ 28 th February 22

23 PVC - Valuation Increased Why? Increase in Relative Value Property may have been altered since last valued Outstanding request for information 23

24 PVC Checking your Valuation Compare the Valuation (NAV) to - Rent you are paying - Rent you know others are paying - If you are an owner/occupier what type of rent would you receive/accept if you put your property on the market. - Actual TO v VO FMT Go online PN & PIN 24

25 Making a Representation Within the 40 day timeline. Online - PN & PIN Hardcopy - Request a copy through the Helpline. Provide all outstanding information Evidence based. 25

26 PVC - Key Dates 21 February Final date for making representations Early September Final Valuation Certificates 15th September Valuation List published Appeal to Valuation Tribunal 28 Days 1 st January Effective for Rates purposes 26

27 Ratepayer Support The Valuation Office website, at Helpline - Lo-Call or Presence in LA s from 30 th January. 27

28 Summary A work in Progress Its a revenue neutral exercise. Dissatisfied Make a representation - online use your PN & PIN Outstanding information provide it now. Objective - Valuation List that is Fair & Equitable to everyone. Evidence based exercise local rents and trading data Valuation Tribunal appeal 28

29 Beyond

30 Consultation with our stakeholders 30

2018-2019 Revision Programme: Dedicated Revision Team producing c.

31 Revision Programme: Dedicated Revision Team producing c. 5,000 cases per annum Clear backlog of revision cases by end 2018 Implement section 28(5): 6 months deadline to complete valid revision Revaluation: Appeals from REVAL 2017 REVAL 2019: Additional 30,000 properties to be revalued by September 2019 Global valuations for two public utilities completed during 2019 New valuation orders for further 30,000 properties to be signed during 2019

32 2017 Revaluation The Consultants Perspective Brian Bagnall FRICS FSCSI 31 st January 2017

34 Developments Change in Information on Certs Valuation date Oct 2015 Market Evidence in Rural Ireland

35 2017 Loss of 1 st Appeal Stage New Revaluations 26,000 Cases 2017 Final Certs Sept 2017

36 Trends Offices Industrial Retail Specialist Pubs/Hotels/Petrol Stations etc

37 Further proposed Certs March Offaly, Kildare, Sligo, Carlow and Kilkenny April- South Dublin - Round 2 Final Certs Mid September Opportunity to phase in increases/decreases gone

38 Rateable Valuation Forum (VO & SCSI) Working with VO and Consultants to iron out difficulties Regular meetings with Tribunal to discuss mutual items Hope to adopt agreed valuation methods for specialist property Hold regular information seminars Assist generally the information circle for both VO and consultants

39 Conclusion Consultants to use mailing list for comparisons and decisions on correctness or otherwise of Proposed Levels South Dublin Reval is likely to be based on indexing the current levels Because of variety of counties it will be difficult to coordinate

40 Thank You: Questions 40

Rateable Valuation System in Ireland: Role of Valuation Office. Association of Irish Local Government June 2017

Rateable Valuation System in Ireland: Role of Valuation Office Association of Irish Local Government June 2017 Areas Covered Valuation Office & Rating System in Ireland Governing Legislation National Revaluation