National Revaluation Programme REVAL 2017 Society of Chartered Surveyors Ireland 31 st January 2017 Declan Lavelle Head of Valuation Services
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 2017 2019 Valuing our Potential 2
Valuation Office Who we are and what we do 3
Rates - Valuation Annual Charge based on the value of the occupied property Valuation Valuation Office ARV Local Council members Valuation x ARV = Rates. 4
Why Revaluation? Equity and Uniformity - Differential movement in rental values occur over time - Restore relativity between properties, categories & locations. Current System - 1988 Values - RVs Nominal Valuations Revaluation = Redistribution of rates liability Transparency current market rental values Rolling revaluation programme: every 5-10 years 5
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
Revenue Neutral It s about Redistribution of rates liability Revenue neutral: - 2018 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
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 2017 - Roscommon - Leitrim - Longford - Westmeath March/April 2017 8
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
PVC Issue Dates/ARVs County Issue Date Indicative ARV Longford - 12/01/2017 0.25 Roscommon - 12/01/2017 0.25 Westmeath - 12/01/2017 0.20 Leitrim - 19/01/2017 0.23 Offaly - 02/03/2017 Kildare - 02/03/2017 Sligo - 16/03/2017 Carlow- 13/04/2017 Kilkenny - 13/04/2017 South Dublin - 13/04/2017 11
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
Statutory Process Valuation Acts 2001 to 2015 Commenced in Nov 2015. - Explanatory Leaflet to each ratepayer - Met with various Trade Bodies/Chambers of Commerce - 10 Counties S45 Notices Analysis of Market and Trading Data 13
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
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
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
Valuation Scheme - Pubs Valuation Scheme: - On Sales: 7-8% of FMT - Off Sales: 3% of FMT - Food: 5% of FMT > 100k 17
Valuation Scheme Service Stations Shop Turnover: - Throughput > 1m litres 1-4% - Throughput < 1m litres 1-2.5% Fuel Sales - 3.00/1,000 L to 11.00/1,000L Car Wash - Turnover 5% to 15% 18
Revaluation Outcomes SDC C Fingal DLR Dublin City Waterford Limerick Effectively a new system a new Council approach 5 102005 years 2005 Conducted 2005 2011 2011 2012 Dublin 49% Waterford 65% Limerick 54% 56% 65% 65% 10 Counties as part of REVAL 2017 - 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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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
PVC - Valuation Increased Why? Increase in Relative Value Property may have been altered since last valued Outstanding request for information 23
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
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
PVC - Key Dates 21 February 2017 - Final date for making representations Early September 2017 - Final Valuation Certificates 15th September 2017 - - Valuation List published Appeal to Valuation Tribunal 28 Days 1 st January 2018 - Effective for Rates purposes 26
Ratepayer Support The Valuation Office website, www.valoff.ie, E-mail at reval2017@valoff.ie, Helpline - Lo-Call 1890 531 431 or 01 8171033 Presence in LA s from 30 th January. 27
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
Beyond 2017 29
Consultation with our stakeholders 30
2018-2019 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
2017 Revaluation The Consultants Perspective Brian Bagnall FRICS FSCSI 31 st January 2017
Developments Change in Information on Certs Valuation date Oct 2015 Market Evidence in Rural Ireland
2017 Loss of 1 st Appeal Stage New Revaluations 26,000 Cases 2017 Final Certs Sept 2017
Trends Offices Industrial Retail Specialist Pubs/Hotels/Petrol Stations etc
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
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
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
Thank You: Questions 40