Scope
The scope of this Practice Note is solely to ensure a consistent valuation approach for this Property Class/Sub Class/Type for Non-Domestic Revaluation 2023 and subsequent entry in the new Valuation List which becomes effective on 1 April 2023.
The basis of valuation for new entries in the Valuation List, and Rating Revision cases after 1 April 2023, is Schedule 12 (2)(1) of the Rates (NI) Order 1977.
Description
This Practice Note refers to property classified as:
Class: Miscellaneous Public Service Properties
Sub Class: Local GOVT Specialised Properties
Type: Civic Amenity Site, Recycling Plant, Refuse Disposal Site/ Plant
This Practice Note does not apply to the valuation of private landfill sites. These should be valued in line with the methodologies adopted in the Landfill Site Practice Note.
Legislative background
Schedule 12 Part 1 Paragraph 1 of the Rates (NI) Order 1977 applies.
“Subject to the provisions of this Schedule, for the purposes of this Order the net annual value of a hereditament shall be the rent for which, one year with another, the hereditament might, in its actual state, be reasonably expected to let from year to year, the probable average annual costs of repairs, insurance and other expenses (if any) necessary to maintain the hereditament in its actual state, and all rates, taxes or public charges (if any), being paid by the tenant”.
Consideration must be given to Article 41 2(a) of the Rates (NI) Order 1977 on whether properties to which this Practice Note applies are either wholly/partially/non-exempt, see Appendix 1 for extract.
These premises also fall under The Waste and Contaminated Land (Northern Ireland) Order 1997 (Supersedes the Pollution Control and Local Government (NI) Order 1978). Under this legislation District Councils must:
- uphold a duty of care to ensure their operations have no adverse environmental impact.
- ensure as carriers of waste they are registered and licensed to do so.
- ensure sites where waste is disposed of or held pending disposal are authorized to do so.
Valuation approach for 2023
The Comparative method of valuation is to be retained as the approach for this type of hereditament.
Any rateable plant and machinery should be valued by reference to the Reval2023 LPS Cost Guide.
Rent and lease questionnaires
For this class of property Rent and Lease Questionnaires (RALQs) were not issued.
Contacts
For advice on any aspect of this Practice Note contact LPS on 0300 200 7801.
Appendix 1
ARTICLE 41 2(A) OF THE RATES (NI) ORDER 1977 (EXTRACT)
Distinguishment in valuation list of hereditaments used for public, charitable or certain other purposes
41.— (1) Subject to the provisions of this Article, where the Commissioner or the district valuer is satisfied that a hereditament is a hereditament of a description mentioned in paragraph (2), he shall distinguish the hereditament, or cause it to be distinguished, in accordance with paragraph (3).
(2) The hereditaments referred to in paragraph (1) are—
(a) any hereditament which is altogether of a public nature and is occupied and used for purposes of the public service;
(3)The hereditament shall be distinguished—
(a )in the capital value list, if it is used for domestic purposes which are also exempting purposes, as exempt from rates under that list to one-half of the extent to which it is so used;
(b) in the NAV list, as exempt from rates under that list to the whole of the extent that it is used for exempting purposes which are not domestic purposes.
(3A) Where the hereditament is used otherwise than wholly for domestic purposes which are exempting purposes, the capital value of the hereditament shall be apportioned by the Commissioner or the district valuer between—
(a) the use of the hereditament for domestic purposes which are exempting purposes; and
(b) the use of the hereditament for other purposes (so far as relevant to its capital value);
and the apportionment shall be shown in the capital value list.
(3B) Where the hereditament is used otherwise than wholly for exempting purposes which are not domestic purposes, the net annual value of the hereditament shall be apportioned by the Commissioner or the district valuer between—
(a) the use of the hereditament for exempting purposes which are not domestic purposes; and
(b) the use of the hereditament for other purposes (so far as relevant to its net annual value);
and the apportionment shall be shown in the NAV list.
(3C) In paragraphs (3) to (3B) and (4), “exempting purposes” means purposes mentioned in sub-paragraph (a), (b)(i) or (ii), (c), (d) or (e) of paragraph (2).