| 2009 Revaluation |
When
The Land Valuation and Tax Act 1967 requires a revaluation of all properties on the Island to be carried out every five years. The last revaluation was carried out in 2004 and was replaced on 1st January 2010 with the 2009 Valuation List. The purpose of the revaluation is to revalue all properties (commercial and residential) to current levels of value..
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Why
All properties are revalued at the same time to maintain equity in the Valuation List. Property values change over time and these changes are not uniform across the market. Some property types and areas change in value more than others do. The revaluation "re-levels the playing field" by reflecting these relative changes in value so that the equity of the valuation list is maintained.
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How
In order to carry out the 2009 revaluation it was necessary to collect information on rents passing. In December 2008 for residential properties and January 2009 for commercial units, rent return forms were sent out to all tax payers on the Island requesting information on whether or not their property was rented and if it was, requesting information on the lease details and rent passing..
Taxpayers were required by law to complete and return the form within 21 days from the date of receipt. The Department treats the rental information in confidence and it is only used for the purposes of the revaluation and not released to a third party or any other Government Department..
The rents were adjusted to match the statutory definition of annual rental value (ARV). The net rent in terms of ARV were then analysed using a combination of multiple regression analysis and spatial analysis. The analysis established the effect of various property characteristics, such as size, location, amenities etc. on the rental value of the properties. The result of this analysis was then used to value all residential properties including those that are owner occupied.
This mass appraisal of all properties not only ensures that all properties are valued on the same basis and on the same date, but ensures equity between the assessments. |
New List
The 2009 Valuation List was published on this web site and copies placed on deposit in all Post Offices throughout the Island on the 31st December 2009. It came into effect for tax purposes on the 1st January 2010 and replaced the 2004 Valuation List. |
Objecting to Your New ARV
Should you believe that an entry in the new valuation list is incorrect, you will have until the 29th June 2010 in which to lodge an objection against it.
An objection must be made in the prescribed form, which may be obtained from the Land Valuation Department. One form should be used for each valuation unit that you wish to object against i.e. if you are objecting to the ARVs of 2 apartments in the same dwelling, 2 objection forms must be filled in.
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| Grounds for Objection
There are 6 grounds of objection as stipulated in the Land Valuation and Tax Act 1967:
(a) that the annual rental value of any valuation unit appearing in the (draft) valuation list is incorrect or unfair having regard to other annual rental values therein;
(b) that a valuation unit should not have been included in the (draft) valuation list;
(c)
that a valuation unit omitted from the (draft) valuation list should be included therein;
(d) that a valuation unit included in a series or complex of valuation units as a single valuation unit on the (draft) valuation list should be listed separately in the (draft) valuation list or omitted therefrom;
(e) that a valuation unit listed separately in or omitted from the (draft) valuation list should be combined with one or mire others of a series or complex of valuation units and listed as one single unit;
(f)
that the (draft) valuation list is incorrect in some other material particular.
Making an objection because you consider your new land tax bill to be too high or that the unit should not be under rent control are not valid grounds.
The tax rates are set by the Minister of Finance, subject to approval by the Legislature. Any concerns regarding such matters should therefore be raised with the Ministry of Finance. |
| Objection Procedure
Once you have submitted a valid objection to the Land Valuation Department, you will receive confirmation in writing of receipt of your objection.
Objections will then be dealt with after the closure of the objection period on the 29 th June 2010.
A member from the Department will initially visit your property to check that the physical details such as floor areas etc. are correct. Following this, a valuer will contact you to arrange an appointment to carry out an internal inspection and to discuss your contentions.
The valuer will then revalue your property taking into account all the relevant factors and will notify you of the findings.
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| Alteration of the New List
If the new ARV does not need to change and you are satisfied with the explanation of the Land Valuation Officer, you may withdraw your objection, either verbally or in writing, and it will proceed no further.
However, if the ARV needs amending as a result of the findings, a notice of proposal will be served to either increase or decrease the ARV accordingly. Any changes to your ARV will be backdated to the 1 st January 2010.
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| Land Valuation Appeal Tribunal
If an objection cannot be resolved and you do not accept the Department's findings, you have the right to have your objection heard by the Land Valuation Appeal Tribunal. You will be required to pay a hearing fee prior to your objection being listed for hearing.
The Tribunal consists of a chairperson and a minimum of two other panel members. The panel will hear your objection and the response of the Land Valuation Officer before making a determination. You can either present your case in person, by written submission or if you so wish have someone represent you at the hearing.
The Tribunal's decision is final and may only be appealed on a point of law to the Supreme Court.
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