Joint SCSI/Valuation Office Seminar. Dublin City and Waterford Revaluations. The Representations Stage

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1 Joint SCSI/Valuation Office Seminar Dublin City and Waterford Revaluations Towards the Production of Uniform and Equitable Valuation Lists The Representations Stage Declan Lavelle Head of Valuation Services, Valuation Office 13 th February 2013

2 Rating Valuation System Rates: Tax on occupation of C&I property Contributes c. 1.3 billion per annum towards funding Local Authorities Challenges: Pace of revaluation & Ensuring Valuation Lists are Settled and Reliable

3 DCC Revaluation Commissioner made Valuation Order: May 2011 VO collected & analysed data Rent/Lease/Tenure details Physical property data Trading Details Proposed Valuation Certificates issued: October January 2013 Representations Stage underway Publication of Valuation List on 31 st December 2013

4 Waterford Revaluation Waterford City Council, Waterford Co. Council & Dungarvan Town Council Commissioner made Valuation Orders: March 2012 Proposed Valuation Certificates will issue in three batches: March/April 2013 Representations Stage to follow Publication of three Valuation Lists on 31 st December 2013

5 Relevant proposals in Valuation (Am.) Bill Assumption: Appeal to Commissioner removed Renewed Emphasis on Representations stage Proposed Changes to Section 26 of 2001 Act: days for making reps Interest holders will be able to make representations i.e. in addition to the occupier Power to amend valuation of properties not subject of reps Transitional Provisions

6 Reps Stage Context Valuation system based on Net Annual Value (NAV) Equity & Fairness through Correctness and Uniformity Production of a Valuation List which reflects estimated value of each property, on a specified date, relative to the estimated value of every other property on that list

7 Revaluation Process Primary Evidence - NAV Trading Data Construction Rental Information Hotels, Pubs etc. Costs Clubhouses etc. Valuation Scheme

8 Correct and Uniform List Correctness is derived from: Ratepayers providing comprehensive information in timely manner VO conducting proper analysis of that information Uniformity arises from: Consideration of baskets of rents rather than individual transactions Standardisation of approach to analysis Use of ICT

9 Roadstone Ltd. v Commissioner of Valuation Finally, it must be remembered that the valuation directed by the Act of 1852 was to be a uniform valuation. In so far, therefore, as there is evidence of the existing valuations of similar hereditaments made on a proper basis the valuation put upon this quarry must bear a relation to such other valuations. - Kingsmill Moore J., Supreme Court, (1961 I.R), p

10 Dawkins (VO) v Ash Brothers and Heaton Ltd Rating seeks a standard by which every hereditament in this country can be measured in relation to every other hereditament. It is not seeking to establish the true value of any particular hereditament but rather its value in comparison with the respective value of the rest. Pearce L.J., Court of Appeal, (1959), 2AC, p.336

11 Basic Principle of Revaluation What is required in rating is to find the rent which the hypothetical tenant might reasonably be expected to pay... The actual rent for any property is of significance, but is not conclusive of value. What has to be established is a general level of value, which is derived from a conspectus of all the rents in a particular area for the class of property being considered. - Scottish Assessors Association, Practice Note 1,

12 Valuation Act 2001 S. 49 Comparable Values Rating System S. 30.1(b) Ratepayer can appeal value of another property S. 48 Estimated NAV S. 56 Rating Cap A R Rebus sic stantibus V S. 63 Assumption of Correctness S. 40 Similarly circumstanced

13 Reps Stage Objectives Collaborative approach between VO and Ratepayers/Agents Get the Valuation List right before publication Production of a Valuation List which provides equity, uniformity, stability, certainty, & predictability for Ratepayers, Local Authorities & Government.

14 Collaborative Approach Strong partnerships with representative bodies such as SCSI Joint SCSI/VO Rating Forum Providing more and better information to Ratepayers Using full range of support channels, including Web Adopting more standardised processes Increasing public understanding of rating valuation system through dialogue with business representatives Engaging with peer organisations in other jurisdictions

15 Working Together Ratepayer/Agents providing additional information at early stage Avoiding last minute disputes on facts (floor areas etc.) Using online Reps facilities rather than paper Moving from expectation of appeals to getting it right before publication Agreeing an orderly phasing of PVCs

16 Completing the Reps Form Advantages of Online Completion: Ensures correct version of Reps Form is used! Generates electronic receipt No issue of late delivery Can electronically attach documents, drawings, photos etc. Grounds for a successful Rep Some Misconceptions...

17 Sample Reps Form 1 Sample 1 (see following 3 slides) Contains a lot of detail Contains Good Quality Information

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21 Sample Reps Form 2 Sample 2 (see following 2 slides) Poor quality information No Current Rent Very general description of reason for Reps

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24 Sample Reps Form 3 Sample 3 (see following 2 slides) Poor quality information No Current Rent Very general description of reason for Reps Old units of measurement used for areas. Metric measurements should be submitted In Section 4, the Ratepayer/Agent includes a note saying that they reserve the right to submit further info etc.. during Reps Period. Ratepayers/Agents should ensure that they submit comprehensive reps when completing the Reps Forms

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27 How Projects are Organised DCC: Two Teams, each led by a Project Manager Waterford: One Team led by a Project Manager Engagement with SCSI and Agents through Forum Use of extensive information from internal databases and spatial information systems

28 DCC Reps Information to Follow Supplementary Information: 25 th Feb 2013 Existing tenancy details including passing rent Comparative rental information on which the occupier / agent intends to rely Inaccurate floor areas - include a floor plan/sketch and a schedule of areas Issue specific to the subject property supporting evidence e.g. Photograph Supplementary information can be lodged online PDF, JPEG, TIFF

29 DCC Reps Operational Issues 25 th February 2013 Final tranche of PVCs -28 th February 2013 Role of the Agent Inspections VO engagement with the Agent/Ratepayer Indicative Timelines

30 Next Steps DCC: Waterford: Publication of Final Valuation Certs

31 Support & Contacts DCC Valuation Manager: DCC Project Sponsor: DCC Project Managers: Key Non-Bulk Items (DCC & WD): Waterford Valuation Manager: Waterford Project Sponsor: Waterford Project Manager: support: Website: Helpline: