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13 2001

VALUATION ACT, 2001

PART 11

Basis of Valuation

Method of determining property's value generally.

48. —(1) The value of a relevant property shall be determined under this Act by estimating the net annual value of the property and the amount so estimated to be the net annual value of the property shall, accordingly, be its value.

(2) Subsection (1) is without prejudice to section 49 .

(3) Subject to section 50 , for the purposes of this Act, “net annual value” means, in relation to a property, the rent for which, one year with another, the property might, in its actual state, be reasonably expected to let from year to year, on the assumption that the probable average annual cost of repairs, insurance and other expenses (if any) that would be necessary to maintain the property in that state, and all rates and other taxes and charges (if any) payable by or under any enactment in respect of the property, are borne by the tenant.

Method of determining property's value under section 28 (4).

49. —(1) If the value of a relevant property (in subsection (2) referred to as the “first-mentioned property”) falls to be determined for the purpose of section 28 (4), (or of an appeal from a decision under that section) that determination shall be made by reference to the values, as appearing on the valuation list relating to the same rating authority area as that property is situate in, of other properties comparable to that property.

(2) For the purposes of subsection (1), if there are no properties comparable to the first-mentioned property situated in the same rating authority area as it is situated in then—

(a) in case a valuation list is in force in relation to that area, the determination referred to in subsection (1) in respect of the first-mentioned property shall be made by the means specified in section 48 (1), but the amount estimated by those means to be the property's net annual value shall, in so far as is reasonably practicable, be adjusted so that amount determined to be the property's value is the amount that would have been determined to be its value if the determination had been made by reference to the date specified in the relevant valuation order for the purposes of section 20 ,

(b) in case an existing valuation list is in force in relation to that area, the determination referred to in subsection (1) in respect of the first-mentioned property shall be made by the means specified in section 48 (1) and by reference to the net annual values of properties (as determined under the repealed enactments) on 1 November 1988, but the amount estimated by those means to be the property's net annual value shall, in so far as it is reasonably practicable, be adjusted so that the amount determined to be the property's value is the amount that would have been determined to be its value if the determination had been made immediately before the commencement of this Act.

Valuation on the contractor's basis.

50. —If, in determining the net annual value of property or any part of it in accordance with section 48 , a method of valuation relying on the notional cost of constructing or providing the property or part is used, then, notwithstanding subsection (3) of that section, the net annual value of the property or part, for the purposes of that section, shall be an amount equal to 5 per cent of the aggregate of the replacement cost, depreciated where appropriate, of the property or part and the site value of the property or, as the case may be, part.

Valuation of certain elements of relevant properties.

51. —(1) In determining, under any provision of this Act, the value of a relevant property, the following shall be valued and taken account of in such determination—

(a) any plant in or on the property, being plant specified in Schedule 5,

(b) the water or other motive power (if any) of the property, and

(c) all cables, pipelines and conduits (whether underground, on the surface or overhead and including all pylons, supports and other constructions which pertain to them) that form part of the property.

(2) The value of any matter referred to in paragraph (a), (b) or (c) of subsection (1) shall be determined in the same manner as the value of the property to which it relates is determined under the provision concerned of this Act.

(3) Nothing in paragraph (b) of subsection (1) shall be construed as permitting the value of any machinery in or on the property concerned (not being machinery that constitutes plant specified in Schedule 5) to be taken account of under that subsection unless it is machinery erected and used for the production of the motive power concerned.

(4) In subsection (3) the reference to machinery erected and used for the production of motive power includes a reference to electrical power connections.

(5) Notwithstanding anything in paragraph (a) of subsection (1), a part of any plant referred to in that paragraph which is capable of being moved by mechanical or electrical means, other than a telescopic container, shall not be valued or taken account of in the determination of the value of the property to which it relates.

Valuations in relation to land or buildings used for advertising stations.

52. —(1) For the avoidance of doubt—

(a) in determining, under a provision of this Act, the value of land or a building which is used, temporarily or permanently, for the exhibition of advertisements, the use of the land or building for that purpose shall not be taken into account if such use is made pursuant to a right that exists, separately from the land or building, to make use of the land or building for that purpose,

(b) if land or a building is solely used, temporarily or permanently, for the exhibition of advertisements and such use is not prevented by paragraph (a) from being taken account of in determining, under a provision of this Act, the value of the land or building, then, if the land or building is not occupied for any other purpose, regard shall be had, in making that determination, solely to the fact of its being used for that purpose.

(2) References in this section to land or a building being used for the exhibition of advertisements shall be construed as including references to land or a building being used for the erection of any structure used for the exhibition of advertisements.

Global valuation of property of public utility undertakings.

53. —(1) The Minister may, by order, require the Commissioner to carry out a valuation of relevant properties (taken as a whole as respects the particular undertaking), being properties—

(a) referred to in subsection (5), or

(b) referred to in that subsection and falling within a specified category or categories,

and occupied by—

(i) a specified public utility undertaking, or

(ii) each public utility undertaking falling within a specified class of such undertaking.

(2) The value of the properties concerned determined in accordance with such a valuation is referred to in this Act as a “global valuation”.

(3) An order under subsection (1) shall not—

(a) be made save after consultation by the Minister with the Minister for the Environment and Local Government and any other Minister of the Government who, in the opinion of the Minister, is concerned in the matter, or

(b) provide for the valuation of any relevant property occupied by a public utility undertaking for the purpose of generating electricity.

(4) An order under subsection (1) shall specify a date by reference to which the global valuation or valuations to which it relates shall be made and the date by which that valuation or those valuations shall be required to be entered in the central valuation list under section 55 .

(5) The properties mentioned in subsection (1) are those properties, wherever situated, occupied by the undertaking or each undertaking concerned (whether entered in a valuation list or an existing valuation list or not) that, in the opinion of the Commissioner, are used by the undertaking for—

(a) in case the undertaking is a company, the principal objects of the undertaking as set out in its memorandum of association,

(b) in any other case, the principal purposes for which, in the opinion of the Commissioner, the undertaking carries on business.

(6) The Commissioner shall—

(a) in the fifth year after the year in which a global valuation in relation to an undertaking is carried out under an order under subsection (1) or is last carried out under this subsection, or

(b) at such earlier time as the Minister, after consultation with the Minister for the Environment and Local Government and any other Minister of the Government who, in the opinion of the Minister, is concerned in the matter, may require him or her to do so,

carry out a further valuation, being a valuation of the kind referred to in subsection (1), with respect to the relevant properties occupied by the undertaking referred to in that subsection, and such a valuation is also referred to in this Act as a “global valuation”.

(7) As soon as may be after a global valuation in relation to an undertaking is entered in the central valuation list under section 55 , any value in relation to any property comprised in that valuation which is entered in a valuation list or an existing valuation list shall be deleted by the Commissioner from that list.

(8) The Commissioner shall apportion the global valuation in relation to an undertaking between each of the rating authorities in whose areas property comprised in the valuation is situate in such manner as the Minister shall, after consultation with the Minister for the Environment and Local Government, by order prescribe and so much of the valuation as is so apportioned to each such authority shall, accordingly, be the valuation of the property of the undertaking situate in the area of the authority.

(9) An undertaking in relation to which a global valuation is being carried out shall, within 2 months from the date of being requested in writing to do so by the Commissioner, supply to the Commissioner such information as he or she may require for the purpose of the performance of his or her functions under this section.

(10) The Commissioner shall—

(a) in the case of a global valuation referred to in subsection (1), on the date specified in that behalf in the order concerned referred to in that subsection, and

(b) in the case of a global valuation referred to in subsection (6), on such date as he or she considers appropriate,

issue to the undertaking concerned and the Minister for the Environment and Local Government a certificate (in this Act referred to as a “global valuation certificate”) specifying the value, as determined under that order or subsection (6), as the case may be, of the properties comprised in the valuation and stating such other information as the Commissioner considers appropriate.

(11) The Commissioner shall, on a date that is not less than 3 months before the date on which he or she issues, in its final terms, under subsection (10), a global valuation certificate, issue a copy of that certificate, in the terms he or she proposes to so issue it under that subsection, to the undertaking concerned and the Minister for the Environment and Local Government, together with the notice referred to in subsection (12).

(12) The notice mentioned in subsection (11) is a notice stating that, if the undertaking concerned or the Minister for the Environment and Local Government is dissatisfied with any material particular stated in the copy of the certificate referred to in that subsection, it or that Minister of the Government may, within 28 days from the date of the issuing of the copy to it or him or her, make submissions under this subsection to the Commissioner in relation to the matter (and such an undertaking and that Minister of the Government may make such submissions, within that period, to the Commissioner accordingly).

(13) Submissions under subsection (12) shall, as appropriate—

(a) specify—

(i) the grounds on which the person making the submissions (“the person concerned”) considers the global valuation as made under an order under subsection (1) or subsection (6), as the case may be, and indicated in the copy of the proposed global valuation certificate concerned is incorrect, and

(ii) by reference to such matters as the person concerned considers appropriate, what that person considers the global valuation in relation to the undertaking concerned ought to be,

(b) specify the grounds on which the person concerned considers any other detail (other than in respect of the global valuation) stated in the said copy is incorrect,

(c) specify the grounds on which the person concerned considers that a property ought to have been included in, or, as the case may be, excluded from, the said global valuation and what adjustment he or she considers ought to be made to that valuation were that property to be so included or excluded, as the case may be.

(14) The Commissioner shall consider any submissions made to him or her under and in accordance with subsection (12) and may, if he or she thinks it appropriate to do so, amend the terms of the global valuation certificate concerned proposed to be issued under subsection (10) and issue that certificate, in the terms as so amended, under that subsection accordingly.

Appeals against global valuations.

54. —(1) An undertaking, a rating authority and the Minister for the Environment and Local Government may, within 3 months from the date of the Commissioner's having issued the certificate concerned, each appeal in writing to the Tribunal against—

(a) a global valuation in relation to the undertaking made pursuant to section 53 and specified in a global valuation certificate issued under that section,

(b) any other detail stated in the said certificate,

(c) any decision by the Commissioner to include or not to include any property in that global valuation.

(2) An appeal made under subsection (1) shall, as appropriate—

(a) specify—

(i) the grounds on which the appellant considers that the global valuation made pursuant to subsection (1) or, as the case may be, subsection (6) of section 53 and specified in the global valuation certificate concerned is incorrect,

(ii) by reference to such matters as the appellant considers appropriate, what the appellant considers the global valuation in relation to the undertaking concerned ought to be,

(b) specify the grounds on which the appellant considers that any other detail (other than in respect of the global valuation) stated in the said certificate is incorrect,

(c) specify the grounds on which the appellant considers that a property ought to have been included in, or, as the case may be, excluded from, the said global valuation and what adjustment he or she considers ought to be made to that valuation were that property to be so included or excluded, as the case may be.

(3) As soon as may be after the receipt by it of an appeal made to it under subsection (1), the Tribunal shall serve a copy of the appeal on the Commissioner and whoever of the following is not the appellant, namely, the undertaking concerned or the Minister for the Environment and Local Government.

(4) All other documentation and information in writing submitted in connection with the appeal shall be served by the Tribunal on each of the following persons (other than in a case where the person has submitted the particular documentation or information) namely—

(a) the Commissioner (who shall be the respondent in, and be entitled to be heard, and adduce evidence at, the hearing of the appeal), and

(b) the undertaking concerned, the Minister for the Environment and Local Government and, if it is the appellant or an appellant, the rating authority concerned, (and the undertaking, that Minister of the Government and such a rating authority shall be entitled to be heard, and adduce evidence at, the hearing of the appeal).

(5) The Tribunal shall consider an appeal made to it under subsection (1) and may, as it thinks appropriate—

(a) disallow the appeal and, accordingly, confirm the decision of the Commissioner, or

(b) allow the appeal and, accordingly, do whichever of the following is appropriate—

(i) amend the global valuation of, or any other detail in relation to, the property, the subject of the appeal, as specified in the global valuation certificate concerned,

(ii) decide that property ought to have been included in, or, as the case may be, ought to have been excluded from, the said global valuation and, accordingly, may amend that valuation (and, for this purpose, determine the value of any property that it decides ought to be included in, or excluded from, that valuation).

(6) The Tribunal shall make a decision on an appeal made to it under subsection (1) within 6 months from the date of its having received the appeal, or as soon as possible thereafter.

(7) The Commissioner shall, unless the result of the decision of the Tribunal under subsection (5) or, as the case may be, of the High Court or Supreme Court under section 39 (as applied by subsection (8)) makes it unnecessary to do so, amend the relevant global valuation certificate in a manner consonant with the decision of the Tribunal, the High Court or the Supreme Court under subsection (5) or section 39 (as so applied), as the case may be.

(8) Section 39 shall apply to a determination of the Tribunal under this section as it applies to a determination of the Tribunal under section 37 .

Central valuation list.

55. —(1) The Commissioner shall maintain and make available for inspection, at his or her office, by members of the public a list, which shall be known, and is in this Act referred to, as the “central valuation list”, specifying—

(a) the global valuation made pursuant to section 53 in relation to each undertaking and for the time being in force,

(b) the amount of that valuation that has been apportioned to each rating authority in accordance with section 53 (8),

(c) as respects such global valuations generally which are for the time being in force, the aggregate of the amounts of those valuations that have been apportioned to each rating authority in accordance with section 53 (8), and

(d) such other particulars as the Commissioner considers appropriate.

(2) Relevant property entered in the central valuation list shall be rateable in the area of the rating authority in which it is situate to the like extent as relevant property entered in a valuation list or existing valuation list and so situate is rateable.