New rate demands circulated across County Cavan
Rate payers throughout County Cavan have just received their new valuation certificates and it is estimated that around 60% of rate payers will actually see a reduction in their demand.
While some remain unchanged, between 35 and 40% of rate payers will see an increase in their commercial rates for 2020. Some of those business owners are interviewed in tomorrow's print edition.
In the region of €14 million in rates was paid in County Cavan last year.
The new rateable valuation list will be accessible online where the rateable valuation of any property in Cavan can be viewed.
When the Budget meeting comes up in November, councillors will be tasked with setting a real ARV and not an indicative one as pertained in the past.
The Valuation Office has come up with a valuation for each property and a new multiplier system has been devised.
The exact multiplier decimal figure will be unveiled at the Budget meeting in November.
John O’Sullivan from the Valuation Office gave a presentation to councillors at their September monthly meeting on Wednesday of last week. He outlined how the new valuation system was formulated and what it means for ratepayers.
He explained that the Valuation Office operates under the aegis of the Department of Housing and Local Government and is an independent office.
His office had been assessing the valuation of every property in the Cavan local authority area for the past two years.
He said that before the re-evaluation, the applicable commercial rates for each business were based on circumstances that pertained 30 years ago.
Mr O'Sullivan said the rates bill is made up by multiplying the valuation conferred by his office by the annual rate of valuation set by the elected members of Cavan County Council.
“One of the most challenging things of a re-valuation is that, after it, the two figures that make up the rates liability, both the valuation and the ARV are radically different than previously. A complete change has taken place,” he explained.
“When we are talking about the rateable valuation of a property, we are describing its rentable value, not its capital value. What we are trying to achieve in a revaluation is to get the valuations correct, equitable and uniform, relative to each other. The idea is that people pay their fair share – no more or no less,” added Mr O'Sullivan.
The revaluation process is aimed at redistribution the overall rates liability in the county and nationwide.
“It is about taking the overall cake and distributing it among the 2,600 rate payers in County Cavan, so what each of them pay before and after can change as a result of the revaluation,” outlined Mr O’Sullivan.
“We examine the value of each property and its modern letting value and reflecting the modern contemporary circumstances that prevail across the county in the various town and villages and rural areas and reflect those in a new valuation,” he continued.
The exercise will be repeating in five to 10 years again.
The new valuations will come into play from the November budget onwards and will be the basis for levying rates on an annual basis.
Instances of increases
Speaking following the presentation Aontú councillor Sarah O’Reilly gave instances of where a nursing home demand had jumped by 275% and two other businesses had gone up 300% and 600% respectively.
Cllr John Paul Feeley (FF) said that, as public representatives, they would only hear from business people whose rates had increased.
He referenced one business where the bill had quadrupled. “I find it extraordinary that the view could be taken in that particular village that value of rental property had increased by that factor,” he remarked.
Independent Cllr Brendan Fay said he had been talking to an individual who revealed that his rates were going to go up by €7,500.
Sinn Féin's Paddy McDonald said some small shop owners had informed him that their rates have actually doubled.
Appeals
Anyone who is not satisfied with their valuation, can make an appeal to the Independent Valuation Tribunal. They have until October 14 to do so.
Walk-in clinic
The Valuation Office has arranged a 'walk-in' clinic on Monday at the Johnston Library on September 23. Staff from the office will be present to answer questions and clarify how particular valuations were arrived at.