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LEGAL AND COMPLIANCE


‘THE RATEPAYER HAS 40 DAYS TO LODGE AN APPEAL. IF HE DOESN’T DO THAT, HE’S PRECLUDED FROMAPPEALING HIS VALUATION’


The revaluation process


of commercial property rates began in late 2005 in an effort “to ensure that all ratepayers pay a fair share of the commercial rates to be raised”. The State-runValuationOffice is responsible for the revaluation,


which it says will bring about more fairness to the local authority rating system.However, detractors say the process has been taking too long. Commercial rates are based on rental values, and theValuation


Office is basing its uniformrates on 2005 rental values.Critics say the valuations are out of date due to the huge changes in the prop- erty and businessmarkets over the past two years. In June, the IrishHotels Federation (IHF) called on the Valu-


ationOffice and local authorities to engagewith individual hotels about rates.PaulGallagher,president, IHF, said: “We’ve been put in this position by the Valuation Office,which, nine years after the enactment of the Valuation Act, 2001, has carried out revi- sions of rateable valuations in just two of the 88 rateable areas. “It has ignored numerous letters fromindividual hotels over the


past threemonths, seeking to knowwhen they can expect to have their properties listed for revision of valuation.” So far, theValuationOffice has carried out revaluation in south


Dublin and Fingal County Council areas, and is now revaluating commercial properties in theDún Laoghaire-Rathdown area. The IHFsays that for the 900 hotels in Ireland,which pay €90m


a year to local authorities in rates, this process is too slow. “Ourmembers are literally up in arms as towhat to do nowand


where to go –we have appealed to local authorities to introduce a 30pcwaiver of rates for hotels and guesthouses pending the com- pletion of the countrywide revision of valuations by theValuation Office,” saidGallagher. According to the latest figures from the Valuation Office, in


2008 over 5,000 new properties were valued and a total of 7,686 revision requests were completed,outside the revaluation process. Businesspeople, acutely aware of the high costs they face in all


areas of business,haven’t been shy about issuing revision requests. Tom Davenport, rating manager with Lisney, warns those


businesses that are unhappy with revisions to act upon them immediately. Businesses that have had their rates revalued do have the option


to appeal.After a valuer or revision officer values a property they send out a draft certificate containing the proposed newvaluation of the property.Ratepayers then have 28 days to reply inwriting to the revision officer if they are unhappy with that revaluation. If they don’t reply in writing to the revision officer, a final valuation certificate is issued.Abusiness can then appeal the new valuation


to theValuationOfficewithin 40 days fromthe date of issue of the final valuation certificate. Davenport says this iswhere some firms fall down.“There have


been incidences whereby people haven’t given the certificate the attention it deserves because it’s not a rate demand,”he says. “The ratepayer has 40 days to lodge an appeal. If he doesn’t do


that,he’s precluded fromappealing his valuation. “Because valuation certificates are not actually rate demands,


there is a vast swathe of ratepayers who don’tmake the represen- tations within the required time frame.The rate demands don’t come in until the following year from the local authority, and by that stage it’s too late to do anything about the demand,”he adds. While ratepayers can write to the ValuationOffice and list the


premises for revision for a €250 fee,as opposed tomaking free rep- resentations within the time frame, there is a catch. “If theValuationOffice sees there are no physical changes to the


premises since they were last out, and even if they find the valua- tionwas initially on the high side, they are legally prohibited from changing the rates,” saysDavenport. “It is crucial ratepayersmake the representations or they appeal within the time frame.” Davenport, who carries out rates valuations of properties for


clients and assists them in making representations and appealing to theValuationOffice, says the office isn’t close-minded when it comes to reviewing appeals. “I’ve found they are very reasonable.Inmy experience, if the case


is presented and they see themerits in it, they will hear any case.” In 2008, the Office issued 463 first appeals and 139 Valuation


Tribunal appeals. In addition, therewere 725 first appeals received fromthe revaluation of the south countyDublin area,with some 227 of the commissioner’s decisions subsequently appealed to the ValuationTribunal. If an appeal is not successful, ratepayers do have the option of


submitting another appeal to the Valuation Tribunal, an inde- pendent body set up specifically to settle disputed valuations. While the tribunal’s decision is supposed to be final,businesses


do have a further right of appeal to theHigh and SupremeCourts. It’s no surpriseDavenport advocates using the services of a val-


uations expert like himself but regardless there is a case to do so. “If businesses don’t appeal or contest their rates valuation they’re


virtually stuck with it until the next revaluation scheme. I’d urge businesspeople to scrutinise their valuations,” saysDavenport.


This article does not constitute legal advice and should not be taken as such.OwnerManager urges you to obtain professional advicewhen dealingwith legal issues.


VOL 3 ISSUE 3 2010 OWNER MANAGER 29


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