COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, April 14, 2008
HEADED ITEM NO. 3(c)
Report of the Organisation, Procedure and Finance Committee Meeting 20th March 2008
Report on Rates Revaluation
The following report was NOTED by the Members at the Organisation, Procedure and Finance Committee Meeting held on 20th March 2008:
“Revaluations on all rateable properties within South Dublin County Council’s administrative area have been carried out by the Valuations Office
The purpose of revaluation, which arises from the Valuation Act of 2001, is to bring more equity, fairness and transparency into the local authority rating system. Following revaluation there will be a much closer and uniform relationship between the current rental values of property and their commercial rates liability. The revaluation is a nationwide project which has been piloted in the County of South Dublin.
The Revaluation Unit, of the Valuation Office of Ireland, began the process in November 2005 in the local authority area of South Dublin County Council. This process is now continuing in the administrative area of Fingal County Council. Final valuation certificates were issued, by the Valuation Office, to rate payers in the administrative area of South Dublin County Council in December 2007. The rate payer has a right of appeal against the valuation so affixed. The final date for making an appeals to the Valuation Office was 08/02/2008.
The new valuations, resultant from the revaluation process, became effective from 01/01/08 and ratepayers were of the Annual Rate on Valuation for the South Dublin administrative area for the year 2008.
It is true to say that the revaluation has resulted in significant changes to the rates assessment of some of the properties assessed. A substantial increase to the rates payable has been noted in some cases while in others there has been a marked decrease in the rates assessment. However, regardless of increases or decreases to the valuation of individual properties, the comparative increase in the total rates income of South Dublin will be no greater than in the years prior to revaluation. The Local Authority does not materially benefit from the revaluation process.
In order to give ratepayers notice of the proposed change, the Valuation’s Office, in May 2007, informed each ratepayer of the revaluation process. On the 5th June 2007 the Valuation Office posted Proposed Valuation Certificates to each ratepayer. This certificate stated the new valuation proposed for the ratepayer’s property under the revaluation process. The ratepayer was also informed that they could make representations to the Valuation Office before the 2nd. July 2007 if they were dissatisfied with the proposed valuation or any details contained in the Proposed Valuation Certificate.
Also as previously stated ratepayers have a right to appeal any valuation to the Valuation Office by 08/2/2008. There is a further right of appeal to the Valuation Tribunal. This is an independent body set up to settle disputed valuations between the Commissioner of Valuation and ratepayers.
In relation to childcare facilities there are currently a total of 94 such properties which are rated within the Council’s administrative area. Of the 94, 9 have had their rates decreased, 63 have increased while there are 22 childcare properties which are rateable for the first time in 2008. Approximately 30% of the childcare category has lodged appeals to the Valuation Office and these are currently being processed.
Section 15(2) of the Valuation Act 2001 provides for exemption from rates on the basis of charitable status and may apply where childcare facilities are operated ‘exclusively for charitable purposes and otherwise than for private profit’.
Rates account for approximately 42% of the Council’s income. In this regard, any reduction in relation to the amount of rates collectable by this Council would result in a significant loss to this Council and would have serious implications in relation to the Council's budget. It must be again pointed out that there is an appeal process which ratepayers who were not satisfied with their revaluation could undertake. The Council should not be the one at a loss as a result of revaluation and it is therefore recommended that there should be no change in relation to rates.
A representative from the Valuation Office will give a presentation of the revaluation process to the members at the meeting.
Further information regarding the Valuation Office and revaluation may be had at http://www.valoff.ie”
Mr. L. Kelly then introduced Mr. Declan Lavelle, Valuation Office who delivered a presentation on the revaluation of commercial and industrial property in the South Dublin County Council area.
The presentation focused on the
· reason for revaluation,
· the revaluation process,
· the tasks including extensive consultation with stakeholders,
· the outcome of the revaluation,
· application of Rates “Cap”(in accordance with the Valuation Act 2001 and BIDS Act)
· Account Holders - Decreased and Increased rates liability
· Implications for Crèches
· Appeals
A discussion followed with contributions from Councillors K. Warren, R. Dowds, T. McDermott, T. Ridge, J Daly, E. Tuffy, S. O’Connor, E. Walsh, C. Keane, J. Neville and J. Lahart.
Mr Lavelle responded to the Members’ queries.
The following motion proposed by Cllr Cait Keane, seconded by Cllr Karen Warren was PASSED:
“That this committee agrees we invite the Minister for Children to this council to discuss the rates re-valuation of childcare/after school facilities in Ireland with a view to some change in legislation to facilitate this sector– using SDCC area as a pilot project taking into consideration that it is the first county in the Country to have the rates re-valuation programme completed by the valuation office.”
In conclusion the meeting noted that South Dublin County Council has not benefited from the revaluation and it was agreed to circulate members with a booklet on valuation including Q & A’s.
This motion is now before the Members for consideration.