Commercial Rates Update: Revaluation 2017

ECI has been receiving a large volume of queries from members who are deemed liable for commercial rates. Some of the queries have arisen as members have received notices or seen public information advisories that the Valuations Office is currently undertaking a National Revaluation Programme.

In early September, the Valuations Office published final valuations certificates in ten local authorities as part of the ‘Reval 17’ phase of the programme: Carlow, Kildare, Kilkenny, Leitrim, Longford, Offaly, Roscommon, Sligo, South Dublin and Westmeath County Councils. The new valuations in these ten local authorities will take effect from 2018 and can be viewed using the online Valuations Office NAVdirect service.

If you have recently received a final valuation certificate as part of ‘Reval 17’, your valuation may have increased considerably due to the time passed since the original valuations were set. However, your commercial rates bill may not increase, as the calculation depends on the multiplier set by your local authority for 2018. Your rates liability for 2018 will be calculated by multiplying the valuation of your property by the Annual Rate on Valuation (ARV) which your local authority will set at its budgetary meeting later this year.

Commercial rates add to the difficulties faced by childcare providers that struggle to make ends meet. However, not all childcare settings are liable for commercial rates as in the past few years there have been changes made to commercial rates liability. Childcare providers working on a not-for-profit basis and those providing only the Early Childhood Care and Education Scheme (ECCE) are now exempt from paying commercial rates. The exemption for settings that provide ECCE only is based on the use of the property and that all children attending the service must qualify for ECCE. The building in its entirety should be solely used for the provision of childcare under the ECCE scheme, a room within a larger building will not suffice. It should not be used for other activities such as afterschool or summer camp. The Valuations Officer may ask for a letter as proof that a setting provides the ECCE scheme. 

As part of our advocacy work, Early Childhood Ireland has repeatedly made the case that all early years providers should be treated as education facilities and therefore exempt from rates and we will continue to do this.

Appeals

There are several ways for an occupier of a rateable property who is unhappy with their valuation to appeal their valuation. The Valuation Office will send you a proposed valuation certificate when the revaluation in your local authority is complete and following this you can make a ‘representation’ within 40 days, if you are unhappy with your proposed valuation. The Valuations Office then considers the representations it receives and sends out final valuation certificates.

Final valuation certificates have already been issued in the ten areas listed above, however if your childcare setting is in one of these areas and you are still unhappy with your valuation you have a right of appeal to the Valuation Tribunal. This is an independent body set up to hear appeals against determinations of the Valuations Office. Appeals to the Valuation Tribunal must be made no later than 12th October 2017 for areas revaluated under ‘Reval 17’. If the outcome of the tribunal is not satisfactory, there is a right of appeal to the Higher Courts.

The Valuation Office have been holding walk-in clinics in the areas that have been revalued where staff will be available to answer queries. Dates and locations of these clinics can be found here.

In-between revaluations, an application can be made to have the valuation of a property ‘revised’ if certain material changes have been made to the property, including a change in the rateable status of a property.

As part of our advocacy on behalf of members, ECI is currently researching liability for commercial rates and we are really interested in hearing from any members who have successfully appealed their valuation? If you have, please get in touch with Noreen by email at nmoloney@earlychildhoodireland.ie or by phoning 01-4057104.