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News Release

Dublin

Jones Lang LaSalle warn commercial property owners on the risks of not checking their revised rateable valuations.


Key Messages

• Commercial property rates are currently under review
• The key objective is to re-balance commercial rate inequities

• The risks to commercial property owners are threefold :
1. Majority of revaluations are desk-based and originate from sample figures so the revised rates in some instances may be too high.
2. The appeals process is changing and property occupiers will only have a 28 day window in which to challenge their revised rates. The 19th of November is the closing date for the first set of revaluations already issued.
3. Unchecked rateable values in a specific location can set a “Tone of the List” which in other words, becomes the referring guideline for rateable values in that particular area & therefore, difficult to challenge.
• Jones Lang LaSalle are urging all commercial property owners to have their rateable valuations reviewed by a commercial property professional experienced in the relevant category of property i.e. offices, retail, industrial, etc before the expiry of the 28 day period. 

 

Background Detail

 

All commercial property in Dublin City is currently being revalued for Local Authority Rates purposes by the Valuation Office under the terms of the Valuation Act 2001.  The relevant valuation date for this purpose is 7th April 2011. 
 

 

The Proposed Valuation Certificates are now being issued to the relevant occupiers/owners and this process will be completed in the next couple of weeks.  The actual Valuation Certificates will issue in December 2013 and will become effective for rates purposes for the financial year 2014. 
Existing legislation provides a 28 day period from the date of issue of the Proposed Valuation Certificate for Written Representations to be made to the Valuation Office if the affected occupier/owner considers their assessed valuation to be incorrect.  The 19th November is the relevant date for the submission of Representations in the case of the first tranche of Proposed Valuation Certificates issued on 23 October.

 

 
Jones Lang LaSalle strongly recommend that all rate payers in receipt of Proposed Valuation Certificates should in their own interest, and for the greater long term good of the commercial property sector, have their Rateable Valuations reviewed by a property professional experienced in the relevant category of property i.e. offices, retail, industrial, etc before the expiry of the 28 day period. 
 

 

The criticality of so doing and making Written Representations if considered appropriate, arises for two reasons:

 

 
1. The Valuation (Amendment) No. 2 Bill currently before the Dail proposes to delete a current Right of Appeal to the Commissioner of Valuation against the Valuation Certificate when issued, which Right of Appeal has existed since the 1850’s.  The only Appeal opportunity which will exist when the Valuation Certificate is issued on 31st December 2013 (assuming the above Bill becomes law), is a Right of Appeal to the Valuation Tribunal, a time consuming and costly exercise, the equivalent of a Circuit Court Hearing, although less formal.

 

 
 

 

2.     If excessive valuation levels go unchallenged, they establish what is known as a Tone of the List.  The Valuation (Amendment) No. 2 Bill 2012 proposes to restrict the evidence put forward at a Valuation Tribunal Hearing to “values of comparable properties stated in the Valuation List” thereby excluding actual market evidence and possibly perpetuating  valuation inaccuracies which the Revaluation was intended to address. 
 

 

While the Revaluation of Dublin City, and indeed the balance of the country in due course, is to be welcomed as a mechanism for removing the imbalances and inequities which have arisen in the existing system, it is important that excessive valuations are not allowed to lead to further distortions.

 

While the Dublin City Revaluation will impact on the various categories of property differently, it should be understood that this Revaluation is not intended as a revenue raising exercise.  There is a commitment in the Valuation Act 2001 that Dublin City Council’s Rates Income for 2014 will not be greater than it was in 2013 - allowing for inflation (2012 – approx. €310 million).