Responding to a question in the Assembly today from Simon Hamilton MLA, Mr Robinson said: “The next revaluation will take effect in 2010. However, business ratepayers should be aware that this measure is not a reform of the system. There will be no change to the basis of valuation and the exercise will be revenue neutral.”
Speaking afterwards the Minister explained: “The last revaluation took place in 2003 but, as we know, values do not stand still and changes are taking place in the commercial property market which will soon make the Valuation List out of date.
“For instance, some major retail developments are starting to emerge and these will affect patterns of rental value. It is vital to reassess valuation levels routinely so that the tax burden reflects accurately the situation on the ground.
“I do not believe that it is right that businesses in sectors that have not fared so well since the last revaluation in 2003 are asked to pay more than they should.”
John Wilkinson, Chief Executive of the Land & Property Services agency, the body responsible for carrying out the revaluation exercise, said: "I welcome the Minister's announcement on a revaluation of non-domestic properties. It will allow us to address shifts in valuation levels following on from major new developments throughout Northern Ireland.
“Regular revaluations are an essential component of the property taxation system, ensuring that rates liability continues to be fairly distributed across all sectors in line with changes in rental values. The 2010 date will enable us to harmonise with the regular five-yearly cycle which has been a feature for some time across the rest of the UK."
NOTES TO EDITORS:
- Business rates are a long established local property tax levied on all non-domestic ratepayers, proportionate to the individual rental value of each property.
- It is necessary, therefore, to revalue periodically the entire stock of non domestic property. The last revaluation took place in 2003 using 2001 rental values, the one before that was in 1997.
- Although most values will increase there will be a corresponding reduction in the tax rate, as the purpose of the exercise is redistribution, not increasing overall revenues. Some ratepayers will pay less, some more, depending on relative shifts in rental value since 2001.
- There are approximately 70,000 ratepayers paying business rates in Northern Ireland and it currently contributes £450million a year towards regional services (roads, hospitals, schools, etc) and local services provided by District Councils.
- Revaluations of non-domestic property are underway currently in England, Scotland, Wales and the Republic of Ireland.
